TaxTMI 
TaxTMI 
2018 (4) TMI 755
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....evenue Per: B. Ravichandran: The first issue raised in the present appeal is with reference to tax liability of fly ash generated by the appellant during the manufacture of sponge iron. The second issue is with reference to credit availed by them on rejected finished goods when the same were returned by the suppliers. The impugned order dated 13.02.2017 covered the period February 2011 to Augu....
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....ved that: "5. We have heard both sides and perused the appeal records. The dispute is with reference to the liability of the Appellants to pay Central Excise Duty on the fly ash emerging during the course of generation of electricity. The lower authorities held that the said fly ash is classifiable under Chapter 26 of the Central Excise Tariff and is liable to duty 1% / 5% with the condition th....
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....should be a marketable commodity. Further, the Supreme Court has also categorically held that levy of excise duty is on the manufacture or production of the goods and that leviability of duty is linked to its manufacture or production. Therefore, as propounded by the Supreme Court in a catena of decisions referred to above, the twin tests of manufacture and marketability should be satisfied in ord....
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....merely because the goods „fly ash‟ finds a place in the specific or residuary entry in the schedule it cannot be termed as an excisable commodity, since it satisfies the test of marketability. The twin tests have to be satisfied in order to bring a product within the ambit of excise duty and satisfaction of solitary test a lone would not be sufficient to levy excise duty on the commodi....