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2017 (12) TMI 1023 - AT - Central ExciseWaste - Liability of duty - fly ash emerging during the process of burning in the furnace - Held that: - this Tribunal in several cases has consistently held that fly ash is in the nature of process waste and no duty will be payable on such goods - identical issue decided in the case of M/s Jai Balaji Industries Ltd. Versus CCE & ST, Raipur [2017 (6) TMI 898 - CESTAT NEW DELHI], where it was held that the fly ash emerging during the course of generation of electricity cannot be considered as a manufactured product liable to Central Excise Duty - demand on fly ash set aside. Liability of duty - mill scale - Held that: - similar issue has come up before the Hon’ble Bombay High Court in the case of Hindalco Industries Limited vs. Union of India [2014 (12) TMI 657 - BOMBAY HIGH COURT] in which the Hon’ble High Court considered the dutiability of dross, skimming of various non-ferrous metal arising as process waste during the course of manufacture. The Hon’ble High Court has held that dross, skimming etc. are merely the refuse, scum or rubbish arising in the process of manufacture of aluminium sheets and, therefore, cannot be said the result of treatment, labour or manipulation whereby a new and different article emerges with a distinctive name, character or use - mill scale is not liable for levy of excise duty. Clandestine removal - shortages of finished products - Held that: - Once the appellant has accounted the finished products manufactured in its record, it is incumbent upon him to clear the same after payment of proper Central Excise duty. Having failed to do so, the appellant will be liable to pay such duty alongwith interest as has been done in the impugned order. This portion of the demand merits no interference and is sustained - demand on shortages are upheld. The matter is remanded to the adjudicating authority for the limited purpose of requantification of demand as well as the associated penalties. Appeal partly allowed by way of remand for purpose of quantification.
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