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Regarding levy of excise duty on Coal Ash (Cinder) w.e.f. 23.7.1996
Circular
No. 386
dated 7th April 1998
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.
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