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Judgment
Both these appeals are filed by the Revenue and involve identical issue and are hence, taken up together for disposal by this common order.
In both the appeals, the Department has challenged the orders of the lower authorities that have held that the 'dolachar' or 'coalchar', being a waste item, is not classifiable under Chapter heading 2619 of the First Schedule to the Central Excise Tariff Act. It is the contention of the Revenue in the present appeals that the aforesaid items are rightly classifiable under Chapter heading 2619 and hence, liable to central excise duty.
Heard Sri Joydeep Chattopadhyay, Learned Authorized Representative appearing for the Revenue. Sri Rajeev Kumar Agarwal, Advocate, appeared for the Respondent assessee M/s. Jharkhand Ispat Pvt Ltd. and Sri Manish Rastogi, Advocate for M/s. Balmukund Sponge & Iron Pvt Ltd.
On perusal of the appeal records and hearing the Counsels for the parties, we find that the issue already stands decided by this Tribunal vide Final Order no. 76894-76896 / 2019 dated 17.12.2019 in the case of Alok Steel Industries Pvt Ltd & Others wherein it has been observed that:-
"We have perused the various decisions of the Tribunal relied by the appellants herein. We note that the co-ordinate Bench of the Tribunal at Bangalore in the case of CCE vs. Bellary Steels and Alloys Ltd [2017 (358) ELT 1046 (Tri-Bang)] vide final Order dated 08.05.2017 while dealing with the demand raised by the Department on dolachar under heading 2619 observed as below:-
"4. The product in question arises in the process of manufacture of sponge iron in the rotary kiln where non-coking coal is added to the iron ore. Revenue's contention is that the impugned goods is generated as a waste containing coal char /dust/shell in the manufacturing process of sponge iron and hence it is to be rightly classifiable under 2619. It has further been contended that it is a new product which has a distinct name, character and use and is also found to be marketable.
It is to be noted that the impugned goods are nothing but waste arising during the course of manufacture of sponge iron. In the impugned order, the learned Commissioner (Appeals) has referred to the Chemical Examiner's report which indicates that the goods are predominantly comprising of coal. The use of the impugned goods is also as fuel to generate heat. For these reasons in the impugned order, the view taken is that the product is akin to coal and accordingly is to be classified under 2701.00. We find no reason to interfere with such a finding of the Commissioner (Appeals) and hence the same is upheld and the appeals filed by the Revenue are rejected."
We further note that the various co-ordinate Benches of the Tribunal have also held that dolochar arising in the course of sponge iron manufacture cannot be said to be manufactured product but is a waste item on which duty demand cannot be sustained. The Tribunal in Heg Ltd's case (Supra) vide Final Order dated 19.02.2016 while referring to the Supreme Court's decision in the case of Ahmedabad Electricity Co. Ltd 2003 (158) ELT 3 (SC) has held that char / dolachar is not liable to central excise duty. Similar views have been taken in the decisions relied by the appellant in the case of G.R. Sponge &Power Ltd (Supra), Jai Balaji Industries Ltd (Supra). We are therefore of the view that the issue is no longer res integra inasmuch as the issue already stands settled in favour of the appellants.
Since the issue is no longer res integra, we do not find any reason to take a contrary view and hence, the appeals filed by the Department are rejected.
(Pronounced in the open court on...07th October 2021.)