Waste from sponge iron manufacture is not excisable merely because it may fit a tariff heading.

Dolochar or coalchar generated during sponge iron manufacture is treated as waste arising in the manufacturing process, not as a manufactured product. On that basis, it is not classifiable as a duty-bearing product under Chapter Heading 2619 of the Central Excise Tariff, and central excise duty is not payable merely because the residue may fit a tariff description. The note states that earlier co-ordinate bench decisions had already settled the issue, so the controversy was considered no longer open for fresh examination and the Revenue's appeals failed, leaving the lower authorities' orders undisturbed.

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Issues: Whether dolochar or coalchar arising in the course of sponge iron manufacture is classifiable under Chapter Heading 2619 of the First Schedule to the Central Excise Tariff Act, 1985 and liable to central excise duty.

Analysis: The issue was treated as already settled by earlier co-ordinate bench decisions holding that dolochar/coalchar generated during the manufacture of sponge iron is only waste arising in the manufacturing process and not a manufactured product. The tribunal noted that such waste had been held not liable to excise duty, and that the controversy no longer survived for fresh consideration.

Conclusion: The item is not classifiable under Chapter Heading 2619 as a duty-bearing manufactured product, and no central excise duty is payable on it.

Final Conclusion: The appeals filed by the Revenue failed and the orders of the lower authorities were left undisturbed.

Ratio Decidendi: Waste arising during the manufacture of sponge iron, which is not a manufactured product, is not liable to central excise duty merely because it may be capable of classification under a tariff heading.

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