Saleable manufacturing refuse is not excisable goods unless it becomes a distinct product with identifiable goods character.

Aluminium dross and skimmings are not excisable goods merely because they are saleable or may fetch a price. Excise liability requires that the item emerge from manufacture as a distinct product with identifiable goods character, name, character or use; refuse or scum arising in the manufacturing process does not meet that test. The exclusion of dross and skimmings from Item 27 was treated as consistent with their non-goods character and did not justify assessment under Item 68. On that reasoning, aluminium dross and skimmings are not legally assessable to excise duty.

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Issues: Whether aluminium dross and skimmings are goods liable to excise duty under the Central excise law and capable of assessment under Item 68 of the Central Excise Tariff.

Analysis: The assessment depended on whether the dross and skimmings emerged from manufacture as a distinct product having the character of goods. The reasoning rejected the view that mere saleability or the possibility of fetching a price is enough to make refuse or scum into goods. The earlier decision concerning aluminium dross and skimmings was read as proceeding on the footing that such material is not a transformed product with a new name, character or use, but merely scum or refuse arising in manufacture. The exclusion of dross and skimmings from Item 27 was treated as consistent with their non-goods character and not as a basis for carrying them into Item 68.

Conclusion: Aluminium dross and skimmings are not goods and are not legally assessable to excise duty.

Ratio Decidendi: Refuse or scum arising in manufacture does not become excisable goods merely because it is saleable; for excise liability, the item must be the result of manufacture as a distinct product with identifiable goods character.

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