Judgment of Larger Bench of Tribunal on Aluminum dross and skimming - Board Instructions
CBEC brings to the notice of the Principal Chief Commissioners and Chief Commissioners the judgment of CESTAT [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 reads was:
(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?
The Larger Bench answered the reference as:
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.
Board informs the senior officers that 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.
CBEC Instruction in 17/02/2009-CX.1 (Pt), Dated: November 12, 2014