2018 (2) TMI 376 - AT - Central Excise

Dutiability - Zinc Dross & Zinc Ash - waste - whether Zinc Dross & Zinc Ash, cleared by the respondent/assessee as waste are dutiable? Held that - the issue herein is squarely covered in favor of the respondent/assessee by ruling of Hon ble Bombay High Court in the case of Hindalco Industries Limited Versus Union of India 2014 (12) TMI 657 - BOMBAY HIGH COURT , wherein Hon ble Bombay High Court has been held that Dross and skimming of aluminium, zinc or other non-ferrous metal are waste and hence not dutiable - appeal dismissed - decided against Revenue.

Summary

Issues involved:
Whether Zinc Dross & Zinc Ash cleared by the respondent/assessee as waste are dutiable.

Analysis:
The appeal before the Appellate Tribunal CESTAT, ALLAHABAD revolved around the issue of whether Zinc Dross & Zinc Ash, treated as waste by the respondent/assessee engaged in manufacturing Galvanized - Tower, are dutiable. The Revenue contended that the respondent had not accounted for the production and clearance of Zinc Dross & Zinc Ash, leading to proposed demands through Show Cause Notices. The Adjudicating Authority, however, ruled in favor of the respondent, citing precedents from the Hon'ble Supreme Court to support the position that Zinc Dross & Zinc Ash cannot be considered excisable commodities. The Revenue, dissatisfied with this decision, appealed to the Commissioner (Appeals), who upheld the previous ruling. Subsequently, the Revenue brought the matter before the Tribunal for further consideration.

Upon hearing the arguments of both parties and examining the facts presented, the Tribunal analyzed the issue in light of relevant legal precedents. The Tribunal noted that the case at hand aligns with a judgment from the Hon'ble Bombay High Court in the matter of Hindalco Industries Limited Versus Union of India. In the Hindalco Industries case, the Bombay High Court had determined that Dross and skimming of non-ferrous metals like aluminium and zinc are classified as waste and are therefore not subject to duty. Drawing parallels with this precedent, the Tribunal dismissed the appeals filed by the Revenue, thereby ruling in favor of the respondent/assessee. Consequently, the respondent was deemed eligible for any consequential relief as per the law.

In conclusion, the judgment by the Appellate Tribunal CESTAT, ALLAHABAD settled the dispute regarding the dutiability of Zinc Dross & Zinc Ash cleared by the respondent/assessee as waste. By referencing the relevant legal precedents, particularly the decision of the Hon'ble Bombay High Court in a similar case, the Tribunal determined that the items in question should be classified as waste and are not subject to duty. This ruling favored the respondent/assessee, leading to the dismissal of the Revenue's appeals and granting the respondent any applicable relief in accordance with the law.