Tariff classification of Silico Manganese slag: prima facie exclusion as refuse or residue justified waiver of pre-deposit.

Silico Manganese slag, described as refuse or residue arising in manufacture, was held on a prima facie basis not to fall within the proposed tariff entry because Chapter Note 3 to Chapter 26 excluded refuse or residue not used for extraction of metal or a chemical compound. The demand also related to a period before the amendment of section 2(d) of the Central Excise Act, 1944. These factors justified interim protection, and the appellant was granted waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the duty and penalty demand arising from classification of Silico Manganese slag.

Analysis: The alleged product was a refuse or residue emerging in the course of manufacture of Silico Manganese. On a prima facie view, Chapter Note 3 of Chapter 26 of the Central Excise Tariff Act, 1985 indicated that such refuse or residue, not used for extraction of metal or chemical compound, would not fall within the proposed tariff entry. The demand also related to a period prior to the amendment of Section 2(d) of the Central Excise Act, 1944. These factors were sufficient at the interim stage to justify protection against recovery pending disposal of the appeal.

Conclusion: The appellant was held entitled to waiver of pre-deposit and stay of recovery during pendency of the appeal.

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