Platinum sponge qualifies as primary form for exemption, with sponge and powder of precious metals covered under the notifications.

Platinum sponge imported as the first pure form obtained in the refining process was treated as platinum in its primary form for exemption purposes under Notifications No. 05/2006-C.E. and 12/2012-C.E. The notifications covered unfinished or semi-finished platinum forms, and the accompanying explanatory material and departmental circular supported inclusion of sponge and powder of precious metals recovered or refined from used or secondary materials. The revenue's attempt to exclude the goods as a powder or as a non-covered form was not sustained because no change in notification language or contrary binding precedent was shown.

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Issues: Whether platinum sponge imported by the respondent was entitled to exemption from countervailing duty under Notification No. 05/2006-C.E. dated 01.03.2006 and Notification No. 12/2012-C.E. dated 17.03.2012 as platinum in its primary form, and whether the revenue was justified in treating the goods as powder or a form outside the exemption.

Analysis: The notifications exempt platinum in its primary forms, namely any unfinished or semi-finished form including the enumerated forms. The imported goods were found to be platinum sponge, which is the first pure form obtained in the refining process and is not a wrought form merely because it may be in powder form. The explanatory material and the departmental circular supported the view that sponge and powder of precious metals falling under Chapter 71 were covered by the exemption when recovered or refined from used or secondary materials. The revenue did not show any change in the notification language or any contrary binding precedent overriding the departmental clarification.

Conclusion: The exemption was available to the respondent and the revenue's challenge failed.

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