H.R. Syiem, Member (T)

1. A revision petition dated 18th February, 1981 was filed by M/s. Hindustan Lever Ltd., Bombay against order-in-appeal No. 474/Cal-1979, dated 29-10-1979 passed by the Appellate Collector of Central Excise, Calcutta. This order is said to have been received by the petitioner on 10-9-1980, a fantastic time to take, by any standards.

2. The Appellate Collector held that spent earth which comes in the course of soap manufacture was assessable to duty under item 68 of the central excise tariff. This spent earth is obtained when activated bleaching earth has gone through processes of soap manufacture in which it plays the role of removing the colour etc. from the oil to render it colourless. After a number of processes, the activated earth can no longer bleach or remove colour from the oil. This is when it loses its activity and is called spent earth. The Appellate Collector said that spent earth had a distinctive name, had different uses and was saleable. He found that spent earth was sold to manufacturers of cheap washing soap.

3. This order of the Appellate Collector follows upon the Order No. 2(0) of 1979, dated 26-2-79 passed by the Assistant Collector of