Applicability of excise duty on Zinc Dross

[Sharad Aggarwal]

Please inform whether central excise duty is payable on th ZINC DROSS ? ....... with ref. to the following apex court judgements....... ( The Hon'ble Supreme Court in the case of CCE Vs. Tata Iron & Steel Co. (2004 (2) TMI 68 - SUPREME COURT OF INDIA)= 2004 (165) ELT 386 (SC) held that 'Zinc Dross' arising as refuse during galvanization process is not excisable goods. The decision of apex court in the case CCE Vs. Indian Aluminium Co. Ltd. (2006 (9) TMI 6 - SUPREME COURT OF INDIA) = 2006 (203) ELT 3 (SC) also refers ) .

THANKS

[Surender Gupta]

This matter is subject to review at different platform (though I am not able to recall the same at this time) but I am sure that this issue is very important. In one case, in case of Import, the marketability has been established and held as subject to customs duty. Now, i believe that since there is established market, the required facts needs to be put before the appropriate forum and the issue of marketability must be solved. On the other side, you may refer to amended definition of manufacture. If you are fetching anything, the same will be subject to levy of excise duty even if the same product is not marketable in view of various apex court decisions.

AI Summary

Marketability of zinc dross determines excise treatment; marketable waste may attract duty despite prior non-excisable rulings. Whether central excise duty applies to zinc dross from galvanization: apex court authorities indicate such refuse is not excisable. However, where material is shown to be marketable-including in import contexts-or where the amended definition of manufacture applies to material that is fetched or processed into a saleable product, duty may be argued. The factual matrix on marketability and applicability of the amended manufacture definition should be placed before the appropriate forum for resolution.