Primary form exemption for platinum products extends to powder and platinum-rich alloy despite presence of rhodium.

Exemption from additional duty of customs was available for platinum-rhodium alloy powder or sponge and for platinum powder under the relevant notifications covering precious metals in primary form. The alloy, being predominantly platinum, did not lose exemption merely because rhodium was present. Platinum powder was also treated as a primary form, since the notifications and departmental clarification extended to unfinished or semi-finished commercially recognised forms of the metal. On that basis, the differential duty, interest and penalty could not be sustained and the impugned order was set aside.

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Issues: (i) whether platinum-rhodium alloy powder or sponge imported by the appellant was entitled to exemption from additional duty of customs under the relevant notifications; (ii) whether platinum powder imported by the appellant was a precious metal in primary form and therefore eligible for the same exemption.

Issue (i): whether platinum-rhodium alloy powder or sponge imported by the appellant was entitled to exemption from additional duty of customs under the relevant notifications.

Analysis: The exemption entry covered silver, platinum, palladium, rhodium, iridium, osmium and ruthenium in their primary forms, including unfinished or semi-finished forms. The imported platinum-rhodium alloy was found to consist predominantly of platinum, and the presence of rhodium did not alter its character for the purpose of the exemption. Reliance was placed on the earlier view that platinum-rhodium alloy does not cease to be platinum for classification and exemption purposes when it falls within the chapter entry.

Conclusion: The exemption was available, and the denial of benefit on this ground was unsustainable.

Issue (ii): whether platinum powder imported by the appellant was a precious metal in primary form and therefore eligible for the same exemption.

Analysis: The notifications expressly treated primary forms as including unfinished or semi-finished forms such as ingots, bars, blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires. Platinum powder was held to be a form that falls within this concept of primary form, supported by the departmental circular clarifying that powder of precious metal is covered by the exemption. Earlier tribunal decisions on platinum sponge and platinum metal were also treated as confirming that the relevant exemption extends to forms in which platinum first emerges or is commercially recognised as a primary form.

Conclusion: Platinum powder was eligible for exemption from additional duty of customs under the notifications.

Final Conclusion: The demand of differential additional duty of customs, interest and penalty could not survive, and the impugned order was set aside in full.

Ratio Decidendi: Where the exemption entry covers a precious metal in its primary form, the term must be construed to include commercially recognised unfinished or semi-finished forms of that metal, and a platinum-rhodium alloy predominantly comprising platinum does not lose eligibility for exemption merely because of the presence of rhodium.

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