1. The Collector of Central Excise (Appeals) Madras by order dated 19-8-1983 held that Carbide Sludge which arose in the course of manufacture by the respondents (appellants before him), was waste matter and not goods and hence not classifiable under Tariff item 68 of Central Excise Tariff. He thus allowed the appeal filed by the respondents before him. The Collector of Central Excise, Guntur challenges this order before this Tribunal.

2. The respondents in response to the notice of date of hearing have requested for decision on merits on the basis of arguments advanced by them in their written submissions. We have therefore, heard Smt. Chander for the appellants - Collector of Central Excise, Guntur and perused the available papers.

3. Smt. Chander on hearing dated 3-4-1987 had prayed for time to place literature before the Bench to show that the production in question - Carbide Sludge is marketable and is sold as such. In that connection, she has filed a letter dated 4-5-1987 from the respondents addressed to the Superintendent of Central Excise, Mor VII, IDO II, Visakhapatnam. She submitted that according to this letter, Carbide Sludge is lime and would, therefore, be goods w