Per P.S. Bajaj :

The issue referred to this Bench is as to whether "spent earth" is liable to excise duty or not.

2. The necessity of the reference by the "C" Bench of the Tribunal in Appeal No. E/299/90-C which had been filed against the order-in-original No. 124-CE/JPR/89 dated 19.10.1989 passed by the Collector of Central Excise (Appeals), by M/s. Rajasthan Vanaspati Products Ltd. (one of the appellants) raising demand of excise duty on spent earth, arose due to the conflicting decisions of the various Benches of the Tribunal in different cases regarding the exigibility of the spent earth. Under the erstwhile Tariff 1944, the Benches of the Tribunal expressed consistent view in Hindustan Lever Ltd. Vs. CCE, 1985 (22) ELT 232 (T), Modi Vanaspati Mfg. Co. Vs. CCE, 1990 (47) ELT 57 (T) that spent earth is not excisable being not a manufactured product.

3. But after the enforcement of the new Tariff 1985, the different Benches of the Tribunal had rendered contradictory decisions on this point. In Kashmir Vanaspati Ltd. Vs. CCE, 1996 (13) RLT 670 (T), Shriram Foods & Fertiliser Ltd. Vs. CCE, Final Order No. 126 and 127/96-C, CCE Vs. Kusum Products Ltd., 1996 (18) RLT 32 (T), CCE Vs