2022 (2) TMI 598 - AT - Central Excise

Classification of goods - dolachar or coalchar - waste item - classifiable under Chapter Heading 2619 of the First Schedule to the Central Excise Tariff Act or not - HELD THAT - The issue already stands decided by this Tribunal in the case of M/S. ALOK STEEL INDUSTRIES PRIVATE LIMITED M/S. JHARKHAND ISPAT PRIVATE LIMITED M/S. MAA CHHINNMASTIKA CEMENT ISPAT PRIVATE LIMITED VERSUS COMMISSIONER OF CGST CENTRAL EXCISE RANCHI COMMISSIONERATE 2020 (1) TMI 581 - CESTAT KOLKATA held that the co-ordinate Bench of the Tribunal at Bangalore in the case of COMMR. OF C. EX. CUS. BELGAUM VERSUS BELLARY STEELS AND ALLOYS LTD. 2017 (5) TMI 1710 - CESTAT BANGALORE while dealing with the demand raised by the Department on dolachar under heading 2619 has held that the product is akin to coal and accordingly is to be classified under 2701.00. There are no reason to take a contrary view - appeal dismissed - decided against Revenue.

Summary

Issues: Classification of 'dolachar' or 'coalchar' under Chapter Heading 2619 of Central Excise Tariff Act.

Analysis:
1. Issue of Classification: The appeals filed by the Revenue challenge the classification of 'dolachar' or 'coalchar' under Chapter Heading 2619 of the Central Excise Tariff Act. The lower authorities had held that these items, being waste products, are not classifiable under Chapter Heading 2619. The Revenue contends that these items should be classified under Chapter Heading 2619 and hence, be liable to Central Excise duty.

2. Judicial Precedents: The Tribunal referred to a previous decision in the case of Alok Steel Industries Pvt. Ltd. & Others, where it was observed that 'dolachar' arising during the manufacture of sponge iron cannot be considered a manufactured product but rather a waste item. The Tribunal also cited other cases like Heg Ltd.'s case, G.R. Sponge & Power Ltd., and Jai Balaji Industries Ltd., where similar views were taken, stating that 'dolachar' is not liable to central excise duty.

3. Decision: Considering the precedents and the settled position of law, the Tribunal upheld the decision that 'dolachar' or 'coalchar' is not classifiable under Chapter Heading 2619 and is not liable to Central Excise duty. The Tribunal found no reason to take a contrary view, as the issue had already been settled in favor of the appellants in previous judgments. Consequently, the appeals filed by the Revenue were rejected.

4. Conclusion: The Tribunal, comprising Shri P.K. Choudhary, Member (J), and Raju, Member (T), pronounced the judgment on 7th October 2021, emphasizing the consistent legal position that 'dolachar' or 'coalchar' arising in the course of sponge iron manufacture is to be treated as waste and not as a manufactured product subject to Central Excise duty.