TaxTMI 
TaxTMI 
2024 (7) TMI 474
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....se appeals are filed by the appellant against the following passed by the Commissioner of Central Excise (Appeals), Chennai. (i) Order-in-Appeal No.22 & 23/2014, dated 04.03.2014 (ii) Order-in-Appeal No.77/2014 dated 10.10.2014 (iii) Order-in-Appeal No.143/2015 (CXA-I), dated 25.06.2015 (iv) Order-in-Appeal No.146/2016 (CXA-II), dated 27.07.2016 (v) Order-in-Appeal No.113/2017 (CXA-I), dated 28.04.2017 2. Brief facts as could be gathered from the impugned order are that the appellant is engaged in the manufacture of Castings of Iron and Aluminum falling under Chapter 73 & 76 of the First Schedule to Central Excise Tariff Act, 1985 ('CETA' for short). It is the case of the revenue that during t....
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.... above demands, it appears that the appellant filed appeals before the first appellate authority. The First appellate authority in the impugned order refers to the definition of 'Manufacture' as appearing in the Explanation to section 2 (d) of the Central Excise Act, 1944, refers to the classification under first schedule to CETA wherein, black sand is specifically classified under sub-heading 2619 0090, refers to a test report of chemical engineer, Customs House, Chennai wherein it is said to have reported that black sand is used in various applications like Asphalt concreting, compost additive concrete, manufacture of Portland cement, mineral wool products, etc. and finally refers to its marketability. According to him, the term 'marketab....
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....duct to be subjected to Central Excise duty liability. It was contended that the authorities should have appreciated that the black sand is neither a product nor an intermediate product, is a total waste, which arises during the manufacture of castings and that the natural sand is used in the course of manufacture of castings would become black, while natural sand is not dutiable, Black sand also cannot be subjected to duty. Further, authorities have grossly erred in not at all referring to the following decisions relied upon: 1. Madras Aluminium Co. Ltd. Vs. Commissioner of Central Excise, Salem, 2006 (193) E.L.T. 98 (Tri. - Chennai) 2. Shriram Food and Fertilizers Industries Vs. Collector of C. Ex., New Delhi, 2004 (177)....
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....uthority has brought out anything on record to indicate the ingredients used for the manufacture of black sand. We also do not find anywhere in their orders as to denying the fact that it was the natural sand that turned Black upon being burnt in the furnace. This apart, it is worth observing that the natural sand is clearly a non-dutiable item and hence, the burnt sand which remains could be termed as Black Sand since the same has occurred as 'remains' during the course of manufacture of 'Castings'. 14. Revenue authorities have failed to examine the issue from this perspective. Both the authorities have only proceeded on the basis that the black sand so generated was sold thereafter for a price and therefore, the same is liable to duty,....
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....that goods are manufactured with the object of being sold in the market. If the goods are not capable of being sold then the test of marketability is not fulfilled. Further, the burden is on the Department to prove whether there is the process which constitutes manufacture and secondly whether the product is marketable." 17. The Apex Court has observed that in the said case the second test of marketability was in issue but here in the case on hand, the first test itself is in issue. It is observed by the Apex court that the goods are manufactured with an object of being sold in the market, if the goods are not capable of being sold, then the test of marketability is not fulfilled. 18. Here, in the case on hand before us, it is not the....