Dear Professionals,
We are manufacturers of iron and steel and using coal to substitute the furnace oil due to heavy cost. After processing of the said coal by sizing and screening as required to our needs, some 'COAL FINES' are generated, which are waste for us and hence, cleared the same on payment of excise duty on the basis of 'transaction value'. But the department directing to clear the same on 'as such' category. Kindly clarify.
Debate Over Excise Duty on Coal Fines: Are They Distinct from Coal or Not? Legal Interpretations Vary. A manufacturer of iron and steel sought advice on the excise duty treatment for coal fines generated during coal processing. The manufacturer paid excise duty based on transaction value, but the department insisted on clearing them as 'as such' goods. Respondents debated whether coal fines are distinct from coal, affecting their tax classification. One consultant suggested reversing the duty to avoid litigation if the duty difference is minimal. Another argued that coal fines are not manufactured goods, supporting the department's stance. The discussion referenced legal precedents, highlighting differing interpretations of waste and scrap in excise duty contexts. (AI Summary)
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