Case Law Details
Tata Motors Limited Vs Commissioner of Central Excise (CESTAT Mumbai)
Conclusion: Excise duty shall not be imposed on the generation of aluminum dross and skimming in the manufacture of aluminum castings/parts of motor vehicles.
Held: The issue arose for consideration was whether the aluminum dross and skimming arising out of the manufacture of aluminum motor vehicle parts amounted to manufacture and liable to duty or otherwise. Revenue contended that the above activity amounted to manufacture and therefore, liable for payment of excise duty. It was held that zinc dross and zinc scalling were not goods, hence not excisable. In view of judgments particularly in the case of Hindalco Industries Ltd v. Commissioner of Central Excise, BBSR-II [2019 (4) TMI 1458 – CESTAT KOLKA TA] which was upheld by the Hon’ble Supreme Court, the issue was no longer res Integra. Hence the generation of aluminum dross and skimming in the manufacture of aluminum castings/parts of motor vehicles did not amount to manufacture. Accordingly, it was not liable to duty.
FULL TEXT OF THE CESTAT MUMBAI ORDER
The issue involved in the present case is that whether the aluminium dross and skimming arising out of the manufacture of aluminium motor vehicle parts amounts to manufacture and liable to duty or otherwise. By the impugned order, Learned Commissioner (Appeals) dropped the demand for the extended period against which Revenue filed appeal No. E/862/2012 and the assessee filed appeal No. E/819/2012 against confirmation of demand for the normal period.
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