TaxTMI 
TaxTMI 
2024 (9) TMI 612
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.... of the appellant submits that fly Ash arising out of the burning of coal in boilers by the appellants does not amount to "manufacture". As per the Section 3 of Central Excise Act, 1944 there shall be levied and collected a duty of excise on all excisable goods which are produced and manufactured in India. Therefore, for levy of excise duty, there must be "manufacture" of excisable goods. The twin conditions to be satisfied are that (i) the process by which the item emerges should amount to manufacture i.e. new product with distinct name, character and use should emerge by such processing of raw material and (ii) such new item which emerges out of the process should be "goods" i.e. capable of being bought and sold or marketable. If an item ....
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....he existence of Notification No. 2/2011-CE dated 01.03.2011 cannot be a ground to contend that Fly Ash is liable to duty when Fly Ash is not emerging consequent to a process of manufacture. Following decisions of the Hon'ble Tribunal have held that notifications cannot create levy when there is really none. A) Kiran Spinning Mills V. CCE 1984 (17) ELT 396 (T) B) CCE V. Metro Tyres 1995 (80) ELT 79 (T) C) Selco Extrusions V. CCE 1984 (16) ELT 356 (T) 3. Shri Tara Prakash, Deputy Commissioner (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. 4. We have carefully considered the submission made by both the sides and perused the record. We find that the issue involved in the present case to be decided....
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....l should ultimately get a new identity by virtue of the manufacturing process either on its own or in conjunction or combination with other raw materials. Since coal is not a raw material for the end product in all the cases before us, the question of getting a new identity as an end product due to manufacturing process does not arise. 26. Can burning of coal be called manufacturing? The locomotive steam engines used to run on coal. Coal was being constantly burnt in the boiler of the engine. The constant burning of coal produced cinder. Could it be said that the engine driver was manufacturing cinder? Is any manufacturing activity involved? Burning of coal for purposes of producing steam cannot be said to be a manufacturing activity. The....
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....eing manufactured in India. It cannot be subjected to levy of excise duty. ........ 32. From the above discussion it is clear that to be subjected to levy of excise duty 'excisable goods must be produced or manufactured in India For being produced and manufactured in India the raw material should have gone through the process of transformation into a new product by skilful manipulation. Excise duty is an incidence of manufacture and, therefore, it is essential that the product sought to be subjected to excise duty should have gone though the process of manufacture. Cinder cannot be said to have gone through any process of manufacture, therefore, it cannot be subjected to levy of excise duty." Relying on the aforesaid judgment of th....