2004 (4) TMI 121 - AT - Central Excise

Summary

Issues:
Central Excise duty on "Industrial Dust" arising in the factory.

Analysis:
The case involved the manufacturing of brass and copper articles by M/s. Alcobex Metal Ltd., who also disposed of "Industrial Dust" arising in the factory. The authorities confirmed duty demand of approximately Rs. 25.5 lakhs on the "Industrial Dust" and imposed an equal amount of penalty and interest, alleging duty evasion by the appellant.

The "Industrial Dust" was generated during the manufacturing process through various steps, including melting raw materials in induction furnaces, using fluxes and covering materials, and collecting dust from furnace slag, lining materials, and floor dust. The appellant contended that the dust in question was not excisable goods attracting central excise duty, citing precedents where similar issues were settled in favor of the assessee by the Apex Court.

Upon reviewing the submissions and records, the Tribunal found that the "Industrial Dust" in question was not excisable as it was considered waste or refuse and not manufactured goods. The Tribunal relied on the decision of the Apex Court in a similar case involving Tata Iron & Steel Co. Ltd., where it was held that such waste or refuse does not attract central excise duty. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the assessee.