9911796707
TMI Blogclearance of coal fines - procedureX X X X Extracts X X X X X X X X Extracts X X X X ..... clearance of coal fines - procedure X X X X Extracts X X X X X X X X Extracts X X X X ..... 'COAL FINES' are generated, which are waste for us and hence, cleared the same on payment of excise duty on the basis of 'transaction value'. But the department directing to clear the same on 'as such' category. Kindly clarify. Reply By Pradeep Khatri: The Reply: Dear Phani Raju, In our opinion, if coal fines does not come under the category of coal and if both are entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely two different goods, then, coal fines cannot be removed as such, otherwise, demand raised by the revenue department seems valid. Please check this technical aspect. Further, if there is no much difference of duty between above two goods, then, for the sake of avoid litigation, you may reverse the duty as demanded by the department after conducting the cost benefit analysis. Regards Team YAG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AY and SUN (Management and Indirect Tax Consultants) Reply By Naveed S: The Reply: As per your contention, coal fines are generated during the process of sizing and screening of the coal. In the chapter notes 27, no where it is mentioned that the process of sizing and screening of the coal amounts to manufacture. Therefore, the process carried at your end does not appear to be a manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process and the coal fines separated from coal is nothing but coal itself. If the same are subsequently cleared, then it is nothing but coal cleared As Such from the factory premises. Therefore, department contention is true. Even otherwise, if the coal fines are sold at lower rate then the refined coal (without coal fines) can now be sold at much higher rate; therefore any loss made for sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coal fine is compensated through notional profit made on the refined coal; thus nullifying any loss to the company as a whole. Reply By phani raju konidena: The Reply: But in the case of CCE, Coimbatore Vs. K.M.Textiles Engg. Products reported in Reply By phani raju konidena: The Reply: But in the case of CCE, Coimbatore Vs. K.M.Textiles Engg. Products reported in 2009 (248) ELT 689 (Tri.-Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnai) = 2009 (4) TMI 762 - CESTAT, CHENNAI while dismissing the appeal of the revenue, the Tribunal has held that Demand and penalty - Cenvat/Modvat - Allegation of removal of inputs as such - Cut pieces of MS and HR sheets, removed on payment of duty as applicable to waste and scrap, was left over material after inputs put into use in manufacture of final goods - Demand and penalty not sustainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e - Rule 57-I of erstwhile Central Excise Rules, 1944 - Sections 11A and 11AC of Central Excise Act, 1944. [para 2] On similar ground, since the coal fines are left over material, it cannot be treated as removal as such. Kindly comment. Reply By Naveed S: The Reply: The above case pertains to waste and scrap generated after put to use and after use in the manufacture of finished goods. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, coal fines are segregated from coal and thereafter the remaining refined coal is put to use in the manufacture of finished goods. Reply By phani raju konidena: The Reply: But in the case of CCE, Raigad Vs. Vikaram Ispat Ltd., reported in 2007 (211) ELT 60 (Tri.-Mum.) = 2007 (1) TMI 18 - CESTAT, MUMBAI in that case the Hon'ble Tribunal has held that Cenvat/Modvat - Iron ore fines separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated from inputs, being in the nature of waste, their clearance cannot be equated with the clearance of inputs - Hence, provisions of Rule 57AB of erstwhile Central Excise Rules, 1944, not applicable - Appellants correctly paid applicable duty at price at which waste was sold - Demand for differential duty not sustainable - Rule 3(5) of Cenvat Credit Rules, 2004. [para 19] Then what is your opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, please tell me. Reply By Naveed S: The Reply: Definition of coal fines :- (i) Coal fines are typically generated in the crushing and drying processes during coal preparation prior to combustion in utility boilers. (ii) When coal is extracted from the ground, it is necessary to separate the coal material from sand, dirt, stones, rocks and other non-coal material. This "washing" process, typ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically utilizing water, is performed by specialized equipment referred to as "coal preparation plants". "Coal Fines" are the small particles of coal material that are "washed-off" the coal during the preparation plant process. In view of above, the coal fines are something that is generated during process/manufacture/ extraction of coal. Hence, question of coal fines generated during use of COAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or separation from coal does not arise at all. Coal fines comes into existence before COAL.
In youe case, what is segregated/separated from coal is nothing but coal.. It is just like Bettle nuts, where in the hard/medium/small pieces of Nuts are segregated/separated from the small particles of bettle nuts, however resulting in no manufacturing activity at all. X X X X Extracts X X X X X X X X Extracts X X X X ..... aring ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
