Circular No.822/19/2005-CX

F.No.109/3/2000-CX.3

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

18th November, 2005

Subject:- Supreme Court Judgement in the case of Union of India Vs. M/s. Ahmedabad Electricity Co. Ltd., on the subject of excisability of coal ash (cinder) –  regarding

I am directed to invite your attention to Board’s circular No. 386/19/98-CX dated 7th April, 1998. In this Circular, Board has clarified that the coal ash (cinder) is an excisable commodity classifiable under Heading No.2621.00 and is chargeable to appropriate rate of duty. Further, all pending disputes/assessments on the issue were directed to be settled in the light of these guidelines.

2. This circular was challenged by M/s. Ahmedabad Electricity Co. Ltd. & Others, before the Gujarat High Court who in its judgement dated 4.4.2000, had set aside this Circular. Against the said judgement of Gujarat High Court, Board filed Civil Appeals 2168-2169 of 2001 in the Supreme Court. However, the Supreme Court vide its judgement dated 29.10.2003 has dismissed the Department’s Civil Appeal. This judgement has since been accepted by the Board.

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 7thApril, 1998 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 The said circular may, therefore, be treated as withdrawn.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.

4. Trade and field formations may be suitably informed.

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