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of <h1>Tribunal rules iron-ore fines non-excisable waste, not liable for duty</h1> The Tribunal ruled in favor of the appellant, holding that iron-ore fines produced during the manufacture of sponge iron are non-excisable waste products ... CENVAT credit - manufacture of taxable as well as exempt goods - Rule 6 (3)(b) of the CENVAT Credit Rules, 2004 - emergence of iron ore fines in the process of manufacture of sponge iron - Held that: - appellants are using iron-ore as a raw material. The iron-ore is an non-excisable commodity. They manufacture Sponge Iron which is a dutiable commodity, and during the course of manufacture of Sponge Iron, iron-ore fines emerge. Such iron-ore fines have been held to be non-excisable commodities, inasmuch as no manufacturing process is involved and the said iron-ore fine emerges as a waste product during the process of manufacturing the Sponge Iron - reliance placed in the case of Union of India & Others Versus M/s. Hindustan Zinc Ltd. [2014 (5) TMI 253 - SUPREME COURT] - appeal allowed - decided in favor of appellant. Issues:Manufacture of sponge iron, classification of iron-ore fines, demand of duty on iron-ore fines under Rule 6(3)(b) of CENVAT Credit Rules, 2004, non-excisable nature of iron-ore fines, applicability of case laws in favor of the appellant.Manufacture of Sponge Iron and Iron-Ore Fines:The appellants are involved in the manufacture of sponge iron, a dutiable commodity, using iron-ore as a raw material. During this process, iron-ore fines emerge as waste products. The Department contended that iron-ore fines are manufactured items and demanded duty on them under Rule 6(3)(b) of CENVAT Credit Rules, 2004. The Ld. Consultant argued that iron-ore fines are non-excisable waste products arising during the manufacture of sponge iron, and no separate registers were maintained for common inputs. The Adjudicating Authority upheld the demand, but the appellant contended that iron-ore fines are non-excisable and not manufactured commodities.Legal Analysis and Precedents:The Tribunal analyzed the issue and referred to various decisions supporting the appellant's position, such as Commissioner of Central Excise, Raigad Vs. Vikram Ispat Ltd. and Union of India Vs. Hindustan Zinc Ltd. These cases established that waste products like iron-ore fines, arising during manufacturing processes, are non-excisable. The Tribunal found that iron-ore fines, being waste generated during sponge iron production, do not involve a manufacturing process and are non-excisable commodities. Therefore, the impugned order demanding duty on iron-ore fines was set aside, and the appeal was allowed based on the legal precedents and the nature of the waste product.Conclusion:The Tribunal ruled in favor of the appellant, determining that iron-ore fines generated during the manufacture of sponge iron are non-excisable waste products and not subject to duty under Rule 6(3)(b) of CENVAT Credit Rules, 2004. The decision was supported by various legal precedents highlighting similar cases where waste products were considered non-excisable. Consequently, the impugned order demanding duty on iron-ore fines was overturned, and the appeal was allowed based on the established legal principles and case laws favoring the appellant's position.
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