TaxTMI 
TaxTMI 
2004 (7) TMI 164
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.... of lead ingots from lead concentrate by a process known pyro metallurgical process lead slag emerges as a waste product. It is tapped from the blast furnace and is shifted from the plant area to dump yard. The content of lead in the slag is around 1.5%. On the basis of the ER I return filed by the appellants it was found by the central excise that they have cleared lead slag and W.K. slag for captive consumption without payment of central excise duty for construction of jarosite pond claiming exemption from payment of duty under Notification 67/95, dated 1-3-1995. As per proviso to this Notification, exemption from duty is given on the goods used within the factory of production in relation to manufacture of final product subject to condit....
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....ied on the following decisions. (a) Union of India v. Indian Aluminium Co. Ltd. [1995 (77) E.L.T. 268 (S.C.)] (b) Union of India v. Ahmedabad Electricity Co. Ltd. [2003 (158) E.L.T. 3 (S.C.)] (c) CCE, Patna v. Tata Iron & Steel Co. Ltd. [2004 (165) E.L.T. 386 (S.C.)] (d) Elphinstone Metal Rolling Mills v. CCE, Bombay [2004 (167) E.L.T. 481 (S.C.)] (e) CCE, Jaipur v. Mehta Vegetables Products [1997 (93) E.L.T. 229] (f) Amar Wire & Rolling Mill v. CCE, Mumbai [1999 (114) ....
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..... CCE [1990 (46) E.L.T. 462] (c) Adhir Dutt Instruments Pvt. Ltd. v. CCE [2001 (130) E.L.T. 377] (d) CCE, Chennai v. Modi Steel Wire Manufacturing Co. [2004 (62) RLT 555 (T)] He also pleaded that sub-heading 2620.00 covers ash and residues (other than from manufacturing of iron and steel) containing metal or metal compounds. Note 3 to Chapter 26 of the Central Excise Tariff specifically provides that Heading No. 26.20 applies only to ash and residues of a kind used in industry either for the extraction of metals or as a basis for the manufacture of chemical compounds of metals. This heading does not apply to items like lead slag and W.K. slag since ....
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.... Commissioner that that slag is nothing but a mere muck and sand which has been used in the embankment in construction of jarosite pond. The Commissioner has not accepted the submission of the appellant that slag is a useless waste and being non-usable cannot be considered liable to duty. The main ground for rejecting the plea of the appellant was that the appellants were declaring the production and removal of slag in their returns and they have shown it classifiable under sub-heading 2620.00. He also did not accept the plea of non-marketability of the products on the ground that occasional sales were made by them of both lead slag and W.K. zinc slag. Therefore, he classified these products under sub-heading 2620.00 and held that these pro....
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....mation by skilful manipulation of raw material bringing into existence new substance and nor merely some change in a substance is required to holding a process as amounting to manufacture. Applying these principles to the slag, which is under dispute in the present case, we find that it is neither a marketable commodity nor it has arisen as manufactured commodity but it is simply a waste, which has arisen during the process of manufacture of ingots. Therefore, it cannot be held as excisable commodity. We also find that Note 3 to Chapter 26 of the Central Excise Tariff Act, which reads as under : "heading No. 2620 applies only to ash and residue of a kind used in industry either for extraction of metals or as a basis for manufacture of ch....