clearance of coal fines - procedure

[phaniraju konidena]

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.

AI Summary

Classification of coal fines: whether screening is manufacture determines if fines are coal cleared as such or distinct waste for excise.
Whether coal fines are chargeable as coal cleared as such or as a separate waste good turns on whether sizing and screening constitute manufacture and on the technical nature of the fines. If screening is non manufacturing, fines are coal cleared as such; if fines are a distinct commodity formed prior to or during coal preparation, they may be treated as waste sold at their own value. Tribunal precedents vary and factual/technical determination is required; consider cost-benefit reversal of duty if distinction is uncertain.