No excise relief for aluminium billets, rules SC

NEW DELHI: The Supreme Court on Friday ruled that process of conversion of aluminium ingots into aluminium billets during intermediate stage by process of re-melting and adding other alloys amounted to manufacture and is within the excise duty net.

A Bench comprising justices Ashok Bhan and CK Thakker said: “Ingots and billets are thus two different commercial commodities. They have separate, distinct and identifiable marketability and saleability.” The apex court set aside the order passed by Custom, Excise and Gold (Control) Appellate Tribunal (CEGAT).

“The assessee, no doubt, used aluminium billets captively, but is also selling in open market. We are, therefore, of the view that the commissioner was right in holding that the assessee was liable to pay excise duty and CEGAT was wrong in interfering with the order-in-original,” Justice Thakker said in the verdict.

The judgment came in response to an appeal filed by the revenue department challenging a CEGAT order. The assessee, Mahavir Aluminium of Bhiwadi, was engaged in the manufacture of aluminium products falling under Chapter 76 of the Central Excise Tariff Act, 1985.