Coal cinder not excisable under tariff; duty cannot rest on a circular or trade notice inconsistent with law.

Coal cinder arising in a factory was held not to be excisable goods or a manufactured product for central excise purposes. The Gujarat High Court had already ruled that treating coal cinder as classifiable under heading 26.21 through a board circular and trade notice was arbitrary, illegal, and unsupported by the excise law and tariff; that view was applied because no contrary binding decision was shown for the jurisdiction. Accordingly, coal cinder could not be subjected to duty merely on the basis of an administrative circular or trade notice inconsistent with the statute.

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Issues: Whether coal cinder arising in the factory was a manufactured product liable to central excise duty.

Analysis: The Gujarat High Court had already held that the Board's circular and trade notice treating coal cinder as classifiable under heading 26.21 were arbitrary, illegal, and unsupported by the excise law and tariff. It further held that cinder was not excisable goods within the scope of "other ash" under heading 26.21. As that ruling governed the factory jurisdiction and no contrary High Court decision was shown, the same view was applied.

Conclusion: Coal cinder was not liable to duty and could not be treated as excisable goods or a manufactured product for central excise purposes.

Ratio Decidendi: Where a product is not excisable goods within the relevant tariff heading, it cannot be subjected to duty merely on the basis of a board circular or trade notice inconsistent with the statute and tariff.

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