Tribunal Overturns Excise Duty on Zinc Dross/Ash, Citing Previous Decisions and High Court Ruling; Appeal Succeeds.

The Tribunal set aside the impugned order from the Commissioner (Appeals-I), Jaipur, regarding the appellants' liability to pay excise duty on zinc dross/ash. The Tribunal referenced its previous decision and the Hon'ble Bombay HC ruling, concluding that the appellants were not liable for duty on these items. The appeal was allowed.

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Issues involved: Appeal against Commissioner (Appeals-I), Jaipur's order regarding liability to pay duty on zinc dross/ash cleared without payment of duty.

Summary:
1. The appellants, engaged in manufacturing Galvanized parts of Transmission Line Towers, faced a dispute regarding their liability to pay duty on zinc dross/ash emerging during manufacture. The dispute arose from the amendment in the definition of "excisable goods" in the Central Excise Act, 1944, and a circular by C.B.E. & C. clarifying the marketability of waste products. The proceedings resulted in the confirmation of demand for excise duty and imposition of a penalty, which was upheld by the Commissioner (Appeals).

2. Upon hearing both sides and reviewing the records, it was noted that the duty liability on Aluminium/Zinc Dross had been previously decided in the appellant's favor by the Tribunal in a separate case. Citing the Tribunal's decision and the Hon'ble Bombay High Court's ruling, it was concluded that the appellants were not liable to duty on such items. Therefore, the impugned order was set aside, and the appeal was allowed.

(Order pronounced on 28-10-2016)

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