Coal ash residue from boiler combustion is not excisable goods and cannot be subjected to Central Excise duty.

Coal ash (cinder) arising as residue from burning coal in a boiler is not a manufactured excisable product, because no manufacturing process brings into existence excisable goods. Applying the cited Tribunal ruling and the binding High Court view, the Commissioner (Appeals) order treating the residue as non-excisable was upheld, and Central Excise duty was held not leviable on coal ash (cinder).

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Issues: Whether coal ash (cinder) obtained as residue from burning coal in a boiler is a manufactured excisable product liable to Central Excise duty.

Analysis: The impugned order held that coal ash (cinder) is not a manufactured excisable product. The decision was supported by the cited Tribunal ruling and by the binding High Court view that coal ash obtained as residue of burnt coal in a boiler cannot be treated as excisable goods. In view of that legal position, no infirmity was found in the order of the Commissioner (Appeals).

Conclusion: Coal ash (cinder) is not excisable goods liable to Central Excise duty.

Ratio Decidendi: A residue arising from the burning of coal in a boiler, without any manufacture bringing into existence excisable goods, is not chargeable to Central Excise duty.

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