TaxTMI 
TaxTMI 
2002 (2) TMI 540
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....nc Alloy classifiable under sub-heading No. 7901.20 of the Tariff as confirmed by the Commissioner (Appeals) under the impugned order. 2. Shri S.K. Bagaria, learned Advocate, submitted that M/s. SAIL in their Rourkela Steel Plant manufacture, inter alia, iron and steel and products thereof; that one of the products manufactured by them is 'Cold Rolled Coils' which are galvanized by the process of 'Continuous Hot Dip Galvanising'; that the process of galvanization is as under : Cold rolled coils, carrying a coating of oil, are fed through an oxidizing furnace where oil is burnt out and the steel strip is oxidized by process of flame; the oxidized strip is then passed through a reducing atmosphere of synthesis gas and a thin and cl....
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....f scooping the top dross from the Bath, molten zinc at the top also gets scooped since it is not possible to separate the two; that the material has always been sold by them as "zinc dross" for the purpose of recovery of pure zinc. 3.1 The learned Advocate, further, mentioned that the Assistant Commissioner, under Adjudication Order No. 7/VC/90, dated 26-3-1990, relying upon Notes 3(a) and 3(c) to Section XV and sub-heading Note 1(b) to Chapter 79, held that "major chunk of the product is classifiable under sub-heading No. 7901.20 as unwrought Zinc Alloys" and "very negligible percentage of the product shall be classifiable as zinc dross/residue under Heading No. 26.20". He submitted that sub-heading 7901.20 covers "Zinc Alloys"; th....
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.... purpose of an alloy is to improve the specific usefulness of the primary component not to adulterate or degrade it." 3.3 He also stated that the fact that alloys are manufactured with definite compositions of different metals would also be evident, inter alia, from the following - (i) Note 1 (b) and sub-heading Notes (a) to (d) of Chapter 74 of the Tariff. (ii) Sub-heading Note (b) of Chapter 75. (iii) Sub-heading Note (b) of Chapters 76, 79 and 80 of the Tariff 3.4 The learned Counsel mentioned that as per the Explanatory Notes of HSN below Heading No. 79.01, this Heading covers unwrought Zinc in its different degrees of purity from spelter to....
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....ths after the preparation or refining of metal, and Electro-galvanizing sludge; that these arisings have always been sold by them and are purchased by the buyers as Zinc dross. 4. Countering the arguments, Shri D.K. Bhowmik, learned DR, submitted that the Appellants have made an alloy for the purpose of Zinc Bath and when it is taken out from the Bath, it cannot be termed as residue; that as per Note 3(a) to Section XV, "An alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals; that as per the test report, the sample contains 96.5% by weight of Zinc, 1.3% by weight of iron, rest being mainly aluminium and carbon; that this has not been disputed by the Appellants;....
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....ied under Tariff Heading 79.01." He also relied upon the decision in Natraj Industries Ltd. v. Collector of Customs, Ahmedabad - 2000 (117) E.L.T. 211 (T). 5. We have considered the submissions of both the sides. The rival Headings of the Schedule to the Central Excise Tariff Act read as under : 2620.0 Ash and residues (other than from the manufacture of iron or steel) containing metals or metallic compounds 79.01 Unwrought Zinc 7901.10 Zinc, not alloyed 7901.20 Zinc alloys 6. The learned Advocate has submitted that the impugned goods taken out of Bath is classifiable under Heading 26.20 as Explanatory Notes of HSN specifi....