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

Debate on Zinc Dross Excise Duty: Supreme Court Says Non-Excisable, But Marketability Raises Customs Duty Questions. A query was raised regarding the applicability of central excise duty on zinc dross, referencing Supreme Court judgments that deemed zinc dross, a byproduct of the galvanization process, non-excisable. A respondent noted that while the Supreme Court has ruled zinc dross as non-excisable, the matter is complex and subject to interpretation. They highlighted that if a market exists for the product, it could be subject to customs duty and suggested that the issue of marketability should be addressed by the appropriate forum, considering the amended definition of manufacture and various court decisions.