JAYASWAL NECO LTD. Vs. COMMISSIONER OF CUSTOMS, VISAKHAPATNAM

JUDGEMENT

(1.) THIS appeal arises from OIA No 10/04 (V) CH dated 21 -7 -2004 passed by the Commissioner (Appeals) holding that the cess levied on coke is justified. He has also held that coal and coke are one and the same. The appellants had relied on the Ministry of Coals clarification clarifying that excise duty and cess is leviable only on raw coal dispatched from mines or used in coke making and not on the final product of the coke plant, or Coal Washery as per the Gazette Notification No. 29 -11 -78. The Gazette Notification is also enclose. Learned Counsel submits that both the authorities have not applied the clarification of the Ministry. They have held that coal and final product of coke plant is one and the same. It is not correct. It is his submission that cess is leviable only on the coal and not on the final product produced by the coke plant.

(2.) LEARNED DR reiterated the Departmental view and submitted that the clarification of the Coal Ministry has not been examined by the authorities. He leaves the matter to the discretion of the Bench.

(3.) ON a careful consideration, we notice that the cess under Coal Mines/Services and Development Act, 1974 has been collected on the imported coke. The clarification of Ministry of Coal has not been examined. In terms of the clarification given, the item namely imported coke is a final product of the coke plant and it is not coal and hence cess levied on the coke is not justified. Hence, confirmation of cess on coke is set aside by allowing the appeal in the light of the Ministrys clarification cited before us.