Marketability test for zinc dross: galvanization refuse is not excisable goods without commercial recognition.

Zinc dross generated as refuse during galvanization was treated as non-excisable because it did not satisfy the test of marketability as a commodity known to commerce. Applying Tribunal and Supreme Court authority on dross and skimmings, the document states that mere ability to be sold in some cases is insufficient unless the material is commercially recognised marketable goods. On that basis, zinc dross was held not liable to central excise duty and not classifiable as excisable goods under Chapter 26.

---

---

Issues: Whether zinc dross generated in the course of galvanization is liable to central excise duty as excisable goods under Chapter 26 of the Central Excise Tariff Act, 1985.

Analysis: Zinc dross was treated as refuse arising during the galvanization process. The issue had already been answered by the Tribunal and the Supreme Court authorities relied upon held that dross and skimmings, though capable of being sold in some cases, are not necessarily marketable commodities known to commerce. Following those decisions, zinc dross was held to be non-excisable.

Conclusion: Zinc dross is not liable to excise duty and is not excisable goods.

Ratio Decidendi: Dross or skimmings arising as refuse in the manufacturing process are not excisable goods unless they satisfy the test of marketability as commercially known commodities.

---