The latest judgment of the Supreme Court ( 2003 [158] ELT 3 [SC]) in UOI vs Ahmedabad Electricity Co Ltd, has quoted 18 judgments of the same court as well as numerous judgments of high courts, tribunals and circulars of the ministry of finance, to conclude that cinder, a waste product obtained by burning coal, is not a manufacture and is, therefore, not excisable.
Cinder is unburnt or half-burnt coal recovered from the ash after coal is burnt in factory boilers. It is sold in the market for low potency burning.
Excise duty was demanded on this coal by-product on the grounds that cinder was coming out of a process in a factory, marketable and had a tariff entry called 26.21, meant for
