Per V.K. Agrawal :

These 3 appeals have been referred to this Larger Bench vide Misc. Order No. 37/99-C on the following points:-

"Whether Spent Sulphuric Acid (Dilute Sulphuric Acid) was a product distinct from Sulphuric Acid classifiable under heading 28.07 and was required to be classified as excisable product under heading 38.23? Consequently, whether the Modvat credit was rightly claimable in such cases where input is Sulphuric Acid and Spent Sulphuric Acid is a By-product of the process involved

OR

Sulphuric Acid and Dilute Sulphuric Acid were essentially the same products classifiable as such under 28.07 and in the process in which the later is simply generated from the former it is required to be considered as unmanufactured product; and consequently no duty is leviable and no question of Modvat arises."

2. The facts leading to the above reference are, in brief, that the appellants were engaged in the manufacture of Acid Slury and Detergent Powder and one of the raw materials used by them is Sulphuric Acid classifiable under sub-heading 2807.00 of the Schedule to the Central Excise Tariff Act. They have opted for availing of the Modvat credit of the duty paid on the inputs