| Date: |
12-11-2014
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| Notification No: |
Central Excise INSTRUCTION
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| Issuing Authority: |
Central Excise
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| Type: |
Instruction
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| File No: |
F. No. 17/02/2009-CX.1 (Pt) |
| Subject: |
Regarding judgment of the Larger Bench of Tribunal on Aluminum dross and skimming
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
……….
Instructions
New Delhi, the 12th November, 2014
To
All the Principal Chief Commissioners of Central Excise,
All the Chief Commissioners of Central Excise
Sirs,
Subject - Judgment of the Larger Bench of Tribunal on Aluminum dross and
skimming – reg.
I am directed to bring judgment of Hon’ble Tribunal [Larger Bench] in case of
M/s Hindalco Industries Ltd Vs Commissioner of Central Excise, Belapur, Mumbai -
III and Nagpur [2014-TIOL-1762-CESTAT-Mum-LB]. In this case an important
question of law was framed and answered. The reference made to the Larger Bench
as defined in paragraph 1 and the answer to the reference as given in paragraph
7 of the judgment is reproduced below for ease of reference.
2. “The reference made to the Larger Bench reads as follows:
(a) Whether Aluminium Dross and Skimmings or similar Non-ferrous Metal Dross and
Skimmings, which arise in the process of manufacture of aluminium / Non-ferrous
metal products can be considered as a ‘manufactured goods' and hence excisable
for the period post 10.05.2008 in view of the Explanation added to Section 2(d)
of the Central Excise Act, 1944?
Or
(b) Notwithstanding the Explanation to Section 2(d), Aluminium Dross Skimmings
or other Non-ferrous metal dross and Skimmings cannot be considered as
‘manufactured products' and hence, not liable to excise duty? ”
3. “In the factual and legal matrix discussed above, we answer the reference
made to us as follows:-
Aluminium dross and skimmings and similar non-ferrous metal dross and skimmings
which arise as a by-product in the process of manufacture of aluminium /
non-ferrous metal products are manufactured goods and hence excisable w.e.f.
10.05.2008 in view of the explanation added to Section 2(d) of the Central
Excise Act, 1944.”
4. This is an important judgment and sets out the correct legal position in the
matter. Field officers are directed to follow the same in cases covered by
similar facts. Difficulty if any in implementing this instruction may be brought
to the notice of the Board.
Yours faithfully,
(Pankaj Jain)
Under Secretary (CX-1)
F. No. 17/02/2009-CX.1 (Pt)
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