Copper residues and ash were held outside waste and scrap for excise duty purposes under the statutory definition.

Scaling, ash and cuprous residues generated in copper manufacture were held not to fall within "waste and scrap" for central excise purposes. The reasoning applied the principle that residual by-products resembling dross and skimmings do not become dutiable goods merely because they are marketable, and treated the copper residues as materially similar to the non-dutiable aluminium by-products considered in the earlier Supreme Court view. As they did not answer the statutory description of goods liable to duty, no central excise duty was attracted.

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Issues: Whether scaling, ash and cuprous residues of copper are covered within waste and scrap so as to attract central excise duty.

Analysis: The dispute turned on the character of the material generated during manufacture. The reasoning applied the principle that residues akin to dross and skimmings do not automatically become waste and scrap merely because they are marketable. The exclusion of such residues from the taxable category was treated as consistent with the earlier Supreme Court view on similar aluminium by-products, and the copper residues in question were found to be materially similar in nature.

Conclusion: Scaling, ash and residues of copper are not goods liable to levy of central excise duty as waste and scrap, and the issue is decided in favour of the assessee.

Ratio Decidendi: Residual by-products that are akin to dross and skimmings are not necessarily waste and scrap for excise purposes unless they answer the statutory description of goods liable to duty.

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