TMI Blog2016 (3) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... ON OF INDIA [2008 (10) TMI 95 - PUNJAB & HARYANA HIGH COURT] A perusal of condition no.7 of the said notification will show that customs duty is payable only when imported goods are used for the purpose of manufacture of such articles (here zinc, dross, etc.). The settled legal position is that these are not manufactured items. Hence, on this ground alone, the present impugned order confirming the duty demand will not survive. We noticed further that the various demands issued to the appellants did not specify the legal basis or reason for such demand of customs duties. They indicated that in the event of the impugned goods were found to be non-excisable, then customs duty is payable. Apparently, such conditional and provisional demands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand and show cause notices were issued to the appellants to recover appropriate customs duty on imported zinc used for production of above said goods (scaling/dross/ash). These demands were to recover customs duty in the event of the above goods being treated as non-excisable. The issue was adjudicated by the original authority who vide order dated 22.06.2005 confirmed the demands. On appeal, the ld. Commissioner (Appeals) vide the impugned order dated 26.10.2005 substantially upheld the original order. Aggrieved by this, the appellants are in appeal before us. 2. The ld. Counsel for the appellants contested the findings of the impugned order on the following grounds: a) The impugned goods - zinc, scaling, dross and ash are not man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable goods. 4. Heard both the sides. Examined appeal records. 5. The point for decision is the appellants liability in terms of condition no.7 of notification no.53/97-Cus dated 3.6.1997. The admitted facts are that the appellants imported zinc without payment of customs duty in terms of said notification. They have used the zinc for the intended purpose of galvanising. During the said process, scaling, dross and ash were generated. The dispute is on the duty liability of these products. We notice that the Hon ble Supreme Court in Indian Aluminium Co. Ltd. - 2006 (203) ELT 3 (SC) held that though dross and skimming do arise during the process of manufacture but these are not manufactured products. An article is not exigible to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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