2005 (10) TMI 180 - AT - Central Excise

Summary

Issues involved: Appeal against duty on clearance of coal char/coal dust, coal shell under tariff Heading 2619.00, consideration of waste arising in the course of manufacture of iron and steel, time-bar for demands, intention to evade duty, classification of waste as dutiable.

Summary:
The appeal arose from Order-in-appeal confirming duty on clearance of coal char/coal dust, coal shell under tariff Heading 2619.00, considered as "Other waste" in the course of iron and steel manufacture. The Original Authority dropped demands on time-bar, noting no intention to evade duty. The Commissioner confirmed duty without addressing the time-bar findings. Citing legal precedents, including the Apex Court judgment in UOI v. Ahmedabad Electricity Co Ltd., it was argued that the waste is not dutiable. The Tribunal rulings in similar cases supported the assessee's position.

The issue was found to be covered by relevant legal judgments, establishing that the waste in question, coal char coal dust/coal shell, is spent coal with reduced caloric value, not classifiable as coal under Chapter 2701.00. Lack of evidence showing the waste as coal, merely because it has some market value, does not justify classification as dutiable. The Original Authority's findings on time-bar, lack of intention to evade duty, and the appellants' declarations were crucial. As the Commissioner did not address these aspects, the impugned order was deemed unsustainable, and the appeal was allowed.

(Separate Judgment by Judges: Not Applicable)

The operative portion of the Order was pronounced in open Court upon conclusion of the hearing.