TaxTMI 
TaxTMI 
1988 (7) TMI 187
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....iginal in respect of goods imported by them. The respondents imported electro slag which was assessed to duty under heading 38.01/19(1) and also pre-fused base slag which was assessed to duty under Tariff Heading 31.02/05(1). 2. The respondents claim the assessment of both these under Tariff Heading 26.02/04 of the C.T.A 3. The original authority in its order No. S/6-C-530/84-R, dated 19-7-1984 in respect of electro slag held as under while rejecting the appellants' claim : "The Heading 26.02/04 covers 'slag ash, and residues containing metals or metallic compounds' partly vide their letter dated 7-2-1984 has stated that the basic constituents of the subject material are Ca F2 , Al203 and Cal. The imported Electro slag is certai....
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....m Oxide and Calcium Oxide, yet from the dimension of the pebbles it is apparent that metallic slag had also been added into this and therefore it is not purely synthetic slag or a chemical compound. Therefore, the classification of the imported slag in any case could not have been done under Chapter 28 since the imported slag was not a chemically defined compound. It was also excluded from the purview of Chapter 31 since the slag was not answering to the description of basic slag as it was prefused slag." 6. The revenue has come up in the appeal against the findings of the Collector (Appeals) and urged the following grounds : "The slag covered by Chapter 26 of CTA 1975 as explained in BTN Explanatory notes are slags which are Silicate....
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....nt pleaded that the issue for decision before the Tribunal was whether the goods imported by the respondents were assessable under Heading 26.02/04 as claimed and as held by the appellate authority or assessable under Heading 31.02/05(1) and 38.01/19(1) as held by the Assistant Collector in the two orders, as mentioned above. He read out the order of Collector (Appeals) and pleaded that the Collector (Appeals) had not correctly appreciated the scope of the Tariff Item 26.02/04 under Chapter 26. He pleaded that a proper reading of the chapter note and the description of the Tariff Item shows that the term slag under Chapter 26 does not cover the goods imported. He pleaded that the slag as described in a Chemical Dictionary by Gessner G. Hawl....
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.... imported is not such as is obtained from the surface of the molten metal but is the result of processing of the same. He pleaded that after processing the slag, as such, lost its identity because the chemical composition of the same changed. 11. We observe, while the respondents have pleaded that the goods imported were produced by processing the slag produced in the metallurgical industry by further refining the same, they have not produced any authoritative literature or write-up in support of their submission. 12. In the appeal memorandum filed by the respondents before the Collector (Appeals), the product electro slag has been described as under: "What the Appellant imported was 'Electro slag' required for making of special gr....
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....rms the solid pebble type so called "Prefused ESR Grade Base Slag." 14. The respondents also filed pamphlets obtained from the suppliers. The material in this has been described as under: "These high qualities are obtained owing to a close selection of raw materials and to an original refining process. Our slags are melted and refined in an electric furnace, and consequently acquire an incomparably high purity level. An example of the maximum and typical contents of the secondary elements obtained is shown here below : Silica max 1% Iron Oxide max. 0,3% Sulphur max. 0,020% Phosphorous max. 0,010% Lead max. 20 ppm Carbonz max. 0,05% H2O max. 0,03% 15. From the submission made by ....
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....6.02/04 covers slag, ash and residue containing metals and metallic compounds. Chapter 31 covers fertilizers and alike chemicals and basic slag is covered under this heading. However, it is to be seen that item covered under Chapter 31 must find its use as a fertilizer for it to fall under this heading and it is not the case of either side that this is so. The learned JDR of the department stated that even though the original authority has held that pre-fused basic slag would fall under Chapter 31, he is not pressing this classification. The Collector in his grounds of appeal has also requested for classification under Chapter 38 CTA. 19. We, therefore, hold that so far as these goods are concerned, these cannot be held to be falling und....