#excisable goods

CESTAT Hyderabad ruled that waste mud generated from crude palm oil bleaching is non-excisable waste, not manufactured goods, following the withdrawal of CBIC circulars and exemption notifications. The decision clarifies that spent earth lacks marketability and cannot be classified as excisable goods, relieving manufacturers from duty liability on such by-products.

CESTAT rules that penalties under Rule 26 of the Central Excise Rules, 2002 cannot be imposed without establishing the assessee's knowledge or reasonable belief of confiscation liability. The tribunal emphasized that show cause notices must explicitly allege mens rea, failing which penalties are unsustainable. This ruling reinforces due process protections for businesses dealing with excisable goods.

The Tribunal holds that bagasse and press mud are agricultural waste, not manufactured goods, rendering Rule 6 of Cenvat Credit Rules inapplicable. No duty or penalty can be levied.