Fly Ash/ Coal Ash (Cinder) were exempt from Central Excise duty vide Notification No. 76/86 dt. 10.2.1986. In the Budget 1996-97, Notification No. 76/86 was amended vide Notification No. 11/96 dt. 23.7.1996 consequent to which "Cinder" was deleted from the Schedule to Central Excise Tariff Act, 1985.

2.     It has been reported to the Board that there is a doubt regarding Excisability and rate of Excise duty chargeable on Coal Ash (Cinder) subsequent to 23.7.1996 i.e. the date of issue of Notification No. 11/96.

3.     The matter has been examined by the Board. In the instant case Coal Ash (Cinder) is specified in the Schedule to Central Excise Tariff Act, 1985, this read with Section 2 (d) of CETA, 1985, would render Coal Ash (Cinder) an "excisable goods". The commodity also satisfies the tests of marketability and has a distinct commercial identity know to the trade.

4.     It is therefore, clarified that Coal Ash (Cinder) is an excisable commodity classifiable under Heading No. 2621.00 and is chargeable to appropriate rate of duty. You are requested to ensure proper realisation of Excise duty on the same within your Commissionerate for the period subsequent to 23.7.1996.

5.     All pending disputes/ assessments on the issue may be settled in the light of these guidelines.