Per J. H. Joglekar :

The respondents in this case manufacture Di Calcium Phosphate Animal Feed Grade. During the process chemical waste, namely, dust, sludge and sinews come into existence. The respondents were clearing such waste products on payment of duty during the period February, 1984 to May, 1984. In June, 1984 they filed the refund claim on the ground that the goods were not excisable. The Assistant Collector rejected the refund claim holding that the goods were marketable and that they were having distinct characters and usage; thus, making them "goods" in terms of the Central Excise Law. He further held that the goods did not merit exemption under Notification No. 55/75 dated 1.3.75. The Collector (Appeals) relying upon the following judgements held that such waste was not manufactured products and did not attract duty.

(1) Aluminium Industries Ltd. Vs. Collector of Central Excise, 1987 (31) ELT 748 (T);

(2) Final Order No. 628 to 629/89-C dated 25.10.89 passed by CEGAT in the case of Cyhamid India Ltd.

(3) Union Carbide India Ltd Vs Union of India & Others, 1986 ELT 169 (SC);

(4) Hindustan Lever Ltd Vs Collector of Central Excise, Calcutta, 1985 (22) ELT 232 (T);

(5) Mod