By TIOL News Service

MUMBAI, JUNE 06, 2017: IN this appeal filed before the CESTAT against the o-in-a, the Appellant submitted that there is nothing disputed on record that slag was an outcome in the course of manufacture of principal goods and that there was a solitary sale of such slag made by the appellant.

The Revenue intends to levy duty on such goods on the ground that the appellant having sold the slag, the goods were marketable and are classifiable under Tariff Heading 2621.00.

The Bench noted that with effect from 10.05.2008 the legislature amended section 2(d) of the Central Excise Act, 1944 and prescribed that goods capable of being marketed shall also be dutiable.

It was further observed -

"4. In the present case, the solitary sale cannot be said to be a normal sale in the normal market and slag was also not an outcome of manufacture as principal goods. Therefore, following the law laid down by the Apex Court in the case of Board of Trustees vs. CCE, A.P –  2007-TIOL-178-SC-CX and also Grasim Industries Ltd. –  2007-TIOL-100-SC-CX , the appeals are allowed."

(See 2017-TIOL-1885-CESTAT-MUM)