Burnt coal residue and marketability: coal ash was not excisable goods absent manufacture under the charging provisions.

Burnt coal residue generated in the manufacture process was held not classifiable as excisable coal ash under sub-heading 2621.00. The reasoning was that the material remained only burnt coal ash or cinder, whether produced from coal used as primary fuel or as input in a rotary kiln, and marketability alone did not make it excisable goods. The authority followed the Gujarat High Court view that coal ash does not become excisable merely because it has market value. Accordingly, classification under the coal ash entry was not sustainable and the Revenue's challenge failed.

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Issues: Whether coal ash or burnt coal remains arising in the manufacture process was classifiable under sub-heading 2621.00 and liable to excise duty.

Analysis: The residue generated after burning of coal, whether used as a primary fuel or as an input in a rotary kiln, remained only burnt coal ash. The reasoning adopted was that such residue is not excisable merely because it may have some market value. The authority below had followed the Gujarat High Court view that coal ash or cinder does not become excisable goods only on the ground of marketability, and that classification under the coal ash entry was therefore not sustainable.

Conclusion: The residue was not liable to classification as excisable coal ash under sub-heading 2621.00, and the Revenue's challenge failed.

Ratio Decidendi: Burnt coal residue is not excisable goods merely because it is marketable; excisability requires manufacture of goods within the charging provisions.

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