Tribunal: 'Dolachar' not dutiable under Central Excise. Waste product, not subject to duty.

The Tribunal upheld that 'dolachar' or 'coalchar' is not classifiable under Chapter Heading 2619 of the Central Excise Tariff Act and is not liable to Central Excise duty. Citing previous judgments, the Tribunal emphasized that these items are waste products and not subject to duty. The Revenue's appeals challenging the classification were rejected, affirming the settled legal position that 'dolachar' or 'coalchar' arising in the manufacturing process of sponge iron is considered waste and not a dutiable product.

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Issues: Classification of 'dolachar' or 'coalchar' under Chapter Heading 2619 of Central Excise Tariff Act.

Analysis:
1. Issue of Classification: The appeals filed by the Revenue challenge the classification of 'dolachar' or 'coalchar' under Chapter Heading 2619 of the Central Excise Tariff Act. The lower authorities had held that these items, being waste products, are not classifiable under Chapter Heading 2619. The Revenue contends that these items should be classified under Chapter Heading 2619 and hence, be liable to Central Excise duty.

2. Judicial Precedents: The Tribunal referred to a previous decision in the case of Alok Steel Industries Pvt. Ltd. & Others, where it was observed that 'dolachar' arising during the manufacture of sponge iron cannot be considered a manufactured product but rather a waste item. The Tribunal also cited other cases like Heg Ltd.'s case, G.R. Sponge & Power Ltd., and Jai Balaji Industries Ltd., where similar views were taken, stating that 'dolachar' is not liable to central excise duty.

3. Decision: Considering the precedents and the settled position of law, the Tribunal upheld the decision that 'dolachar' or 'coalchar' is not classifiable under Chapter Heading 2619 and is not liable to Central Excise duty. The Tribunal found no reason to take a contrary view, as the issue had already been settled in favor of the appellants in previous judgments. Consequently, the appeals filed by the Revenue were rejected.

4. Conclusion: The Tribunal, comprising Shri P.K. Choudhary, Member (J), and Raju, Member (T), pronounced the judgment on 7th October 2021, emphasizing the consistent legal position that 'dolachar' or 'coalchar' arising in the course of sponge iron manufacture is to be treated as waste and not as a manufactured product subject to Central Excise duty.

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