Shri Nataraj Ceramics & Chemical Industries Ltd. Vs Commissioner of Central Excise (CESTAT Chennai)
The effect of the judgment of the Hon’ble Supreme Court in the case of Ahmedabad Electricity Co. Ltd. (supra) once for all settled the issue that cinder is not an excisable product. We find that the Board had accepted the said judgement in their circular dt. 18.11.2005 which had inter alia clarified as under :
“3. In view of the Apex Court decision against the Department’s circular, the instructions contained in the Circular No.386/19/98-CX., dated 7th April, 1988 would no longer be valid in their entirety. The said circular may, therefore be treated as withdrawn. Pending disputes, if any, may be decided accordingly.”
Once the earlier circular dt. 07.04.1998 has been withdrawn in its entirety, it stands to reason that the Board has withdrawn from its earlier decision that cinder is an excisable commodity.
The import of the said Supreme Court judgment and the Board’s circular dt. 18.11.2005 will then only mean that cinder is to be considered only as a non-excisable commodity.
The effect of Board’s circular dt. 18.11.2005 is to accept that Supreme Court’s ruling that cinder is non-excisable commodity. That particular circular has not been withdrawn. Hence cinder will continue to be a non-excisable commodity during the period of dispute, notwithstanding subsequent amendment to Section 2(d) ibid w.e.f. 10.05.2008.
