Customs, Excise and Gold Tribunal - Delhi
Alcobex Metals Ltd. vs Cce on 15 April, 2004
Equivalent citations: 2004(95)ECC167, 2004(168)ELT455(TRI-DEL)
ORDER C.N.B. Nair, Member (T)
1. M/s. Alcobex Metal Ltd. manufactured brass and copper articles. They cleared these items on payment of Central Excise duty as applicable under Chapter 74 of the Central Excise Tariff. They also disposed of "Industrial Dust" arising in the factory. Under the impugned order duty demand of about Rs. 25.5 Lakhs has been confirmed in respect of the said "Industrial Dust" and equal amount of penalty has also been imposed. alongwith demand for interest, on the ground that the appellant had evaded duty on "Industrial Dust'.
2. The "Industrial Dust" in question arises during the manufacture of brass and copper articles in the following ways:-
Process of manufacture:
Generation of dust in the factory
(ii) The various raw material, copper and brass, scrap etc., are melted in electrical induction, melting furnace. During the process of melting and casting different type of fluxes and covering material such as charcoal, borax and some specially desired fluxes are used to protect the molten metal from oxidization which is not desirable for quality reasons. These materials float on the metal and keep it covered so that only clean molten metal is poured in the moulds and all covering material is recovered as slag. Metal pieces are hand picked from this slag and non-metal debris is pulverized.
(iii) induction melting furnace used for melting are linked with different types of linings such as silica ramming mass, high alumina ramming mass as well as castable refractory materials. After relining, furnace is sintered so that it can hold molten metal. During melting and casting of metal, due to high temperature of molten metal, lining in the furnace gets eroded and wear out fast, after 5 to 10 times of its use. This damaged lining has to be broken and furnace has to be relined for further use. Metal pieces are hand picked from broken lining and the residual lining material is pulverized.
Sweeping dust from the plants is also collected :
(iv) All the above types of dusts i.e. furnace slag, lining materials and floor dust is collected and all metal pieces are hand picked and recycled. Residual debris are pulverized and clear metal particles are separated and recycled as per requirement. Residual fine powder is collected as dust.
3. The contention of the appellant is that the dust in question is not manufactured goods so as to attract central excise duty. During the hearing of the case, learned Counsel for the appellants pointed out that this issue remains settled in vavour of the assessee by several decisions of the Apex Court, the latest being, in regard to Zinc dross, Flux skimming and Zinc scalings in the case of CCE, Patna versus Tata Iron & Steel Co. Ltd. [2004 (61) RLT 239 (SC)].
4. We have perused the records and considered the submission made by both sides. The "Industrial Dust" in question is not excisable since it is only waste, refuse. It is not manufactured goods. The issue remains covered in favour of the assessee by the decision of the Apex Court in the case of CCE, Patna versus Tata Iron & Steel Co. Ltd. [2004 (61) RLT 239 (SC)]. Accordingly, the appeal is allowed after setting aside the impugned order.