TMI Blog2011 (7) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation clause was added to Section 2(d) of the Central Excise Act under Finance Act, 2008 came into force from 10th May 2008 - Apex Court in Tata Iron & Steel Co. Ltd. case wherein it was held that: Merely because such refuse or scum may fetch some price in the market does not justify it being called a by-product, much less an end-product or a finished product - Appeal is allowed - E/2628/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is whether the zinc ash and dross emerging during the process of galvanization of steel sheets/pipes would be excisable product and, therefore, dutiable as has been held by the lower authorities. 2. The learned advocate for the appellants placing reliance on the decision of the Hon ble Supreme Court in the matter of CCE, Patna v. Tata Iron Steel Co. Ltd. reported in 2004 (165) E.L.T. 386 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same reason question as to whether the final product is exempt or not is also of no relevancy. 3. The DR on the other hand submitted that zinc ash and dross emerges in the process of galvanization and, therefore, the authorities below rightly confirmed the demand by taking resort to the provisions comprised under Rule 6(2) of the Cenvat Credit Rules. 4. The Apex Court in Tata Iron Steel Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct, much less an end-product or a finished product. It was further held that :- This court held that the zinc dross and flux skimming arisen as by-product during galvanization process are not excisable goods. 5. While following the said decision, the Tribunal in Vishal Pipes case has held that process of generation of zinc ash, dross and other residue during the manufacture of galvaniz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se and of the Tribunal in Vishal Pipes case, the appellants are justified in contending that the product, in question, being not an excisable product, the issue as to whether the final product is dutiable or exempted is of no relevancy and the provisions of the Rule 6(2) of the Cenvat Credit Rules cannot be of any help to the Department to justify the demand. In fact, the present case is squarely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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