Final Order No. 783/2003-Nb(B), arising from Appeal No. E/1186/2003-Nb(B). Case: Jain Carbide & Chemicals Ltd. Vs Commissioner of C. Ex., Raipur. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Final Order No. 783/2003-Nb(B), arising from Appeal No. E/1186/2003-Nb(B) |
| Counsel | For Appellant: Shri K.K. Anand, Advocate, and For Respondent: Shri V. Valte, SDR. |
| Judges | Shri V.K. Agrawal, Member (T) and P.G. Chacko, Member (J) |
| Issue | Central Excise Act, 1944 - Sections 2(d), 3 |
| Citation | 2003 (158) ELT 850 (Tri. - Del.) |
| Judgement Date | October 08, 2003 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
V.K. Agrawal, Member (T), (Northern Bench At New Delhi)
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In this appeal, filed by M/s. Jain Carbide & Chemicals Ltd., the issue involved is whether slag obtained by them during the process of manufacture of Ferro Alloys is liable to Excise duty.
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Shri K.K. Anand, learned Advocate, submitted that the Appellants manufacture Ferro Alloys and avail of Modvat credit of duty paid on Carbon paste which is used as furnace lining material; that during the manufacture of Ferro Alloy a waste material called slag is generated which, according to the Department, is classifiable under Chapter 26 of the Schedule to the Central Excise Tariff Act; that the goods falling under Chapter 26 were exempted unconditionally under Notification No. 19/88-C.E., dated 1-3-88; that the said Notification was amended by Notification No. 27/91-C.E., dated 25-7-91 according to which exemption is available provided that no credit of duty paid on the inputs used in the manufacture of the said goods has been taken under Rule 57A of the Central Excise Rules, 1944; that the Commissioner (Appeals) has confirmed the demand of duty against them on the ground that they are manufacturer of slag and also as the slag was manufactured using inputs in respect of which credit had been availed of the benefit of Notification is not available to them. He, further, submitted that the issue is no more res integra as it stands decided by the Tribunal in the case of Tata Metaliks Ltd. v. CCE, Calcutta, 2003 (155) E.L.T. 117 (T) = 2003 (54) RLT 807 (CEGAT) wherein it has been held that slag obtained during the process of manufacture of Pig Iron is not excisable and the question of availing any exemption under Notification No. 19/98-C.E. does not arise; that the Tribunal has relied upon the decision in the case of TISCO Ltd. v. CCE, Patna, 1997 (94) E.L.T. 258 (T) = 1997 (21) RLT 707 (CEGAT) and ACC Ltd. v. CCE, 1993 (67) E.L.T. 321 (T).
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Countering the arguments Shri V. Valte, learned SDR, submitted that the process of manufacture as given in the Appellants'' reply dated 3-1-92 to the show cause notice reflects that in the furnace Manganese ore, Iron slag, Dolomite and Coke are charged; that the carbon paste is used to make cylindrical electrodes for charging and heat generated by the arch between these cylinders is used for the purpose of melting the above items; thereafter the Ferro Manganese is gathered; thus the process involves generation of slag almost at twice the amount of...
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