Aluminium dross and skimming held non-excisable, so central excise duty, interest and penalty could not survive.

Aluminium dross and skimming emerging as waste during manufacture of aluminium products are not excisable, as the point was treated as settled by prior Tribunal rulings in the assessee's own case, supported by High Court authority and a departmental circular. On that footing, no central excise duty could be levied on such by-products or waste. Because the goods were not liable to duty, the confirmed duty demand could not survive, and the connected interest and penalty also fell. The demand, interest and penalty were therefore set aside in favour of the assessee.

---

---

Issues: Whether aluminium dross and skimming arising during manufacture of aluminium products are excisable and liable to central excise duty, and whether the confirmed duty, interest and penalty could survive.

Analysis: The issue was treated as already settled by the Tribunal in the assessee's own case, following the decisions of the High Court and the departmental circular clarifying that aluminium dross and skimming emerging as waste during manufacture are non-excisable. Once the goods are not liable to excise duty, the demand raised on the same basis cannot stand, and the ancillary levy of interest and penalty also cannot survive.

Conclusion: Aluminium dross and skimming arising during manufacture are not excisable and are not liable to central excise duty; the duty demand, interest and penalty were therefore set aside in favour of the assessee.

---