S. Duggal, Member (J)

1. The controversy in this case emanates from rejection of the refund application filed by the appellant, namely Carew Co. Ltd., Rosa (U P.) under the provisions of section 36 of the Central Excises and Salt Act, 1944, and has arisen as a result of demand raised by the Central Excise Authorities in respect of "bagasse" consumed by the appellant in their sugar manufacturing factory during the period 1-3-1975 to 29-4-1975.

2. The facts as set out in the grounds of revision indicate that the Company, during the course of manufacture of sugar in their factory, used sugarcane as raw material and while extracting juice, the fibrous material comes out in a moist condition, known as "bagasse". The contention of the appellant is that this material is more or less a waste product and has no or very little value and as such is stored in the open in the factory premises so that after it dries up, it can be used as fuel in the boilers, which user is pleaded to be as a convenient mode of destruction of the waste material.

3. It was pleaded that after Item 68 was introduced in Central Excise Tariff with effect from 1-3-1975, the company filed a classification list showin