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2023 (7) TMI 578 - AT - Central ExciseValuation - Receipt of consideration for clearance of waste / rubbish - inclusion of additional consideration received by the appellants in the form of credit notes from M/s. Indrox Global Pvt. Ltd. (IGPL) for sale of Ferric Oxide by IGPL, which emerged through chemical reaction of Waste Pickle Liquor, (generated during the course of manufacture of finished goods in the factory of the appellants) in assessable value or not - Rule 6 of Excise Valuation Rules, 2000. HELD THAT:- On identical set of facts wherein also the credit notes were issued by IGPL to the assessee therein and differential duty was demanded from the assessee by considering it as additional consideration received in terms of Rule 6 ibid, this Tribunal in the matter of M/S. TATA STEEL LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI [2019 (1) TMI 2021 - CESTAT MUMBAI] has held that WPL is not an excisable goods therefore Rule 6 of Valuation Rules, 2000 has no application and the question of undervaluation does not arise. It is settled position that receipt of sale proceeds of the by-product i.e. Ferric/ Iron Oxide emerged as a result of chemical reaction of a waste product WPL in IGPL’s reactor cannot be said to be the consideration for WPL as the product has to be assessed in the form in which it is cleared. WPL is nothing but waste which emerges in the process of manufacture of steel articles or finished goods. It’s not an end product or finished product and merely because it fetches some price in the market does not bring it out from the category of waste. It has neither any marketability nor saleability and therefore it’s not liable to any duty. Waste or rubbish, which is thrown up in the course of manufacture, cannot be said to be a produce of manufacture and cannot be said to be exigible to excise duty - the appellant is not at all involved in converting of Ferric/Iron Oxide out of the said WPL and resultantly no demand can sustain against the appellant on that count also. The appeal filed by the appellant is allowed.
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