2018 (9) TMI 128

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....apter Heading 2835, Nuclear Grade Ammonium Di-uranate and Nuclear grade Thorium Oxide classified under Tariff Sub-Heading No.2845.9010 of Central Excise Tariff Act, 1985. 2.1 The Department contended that Nuclear Grade Ammonium Di-uranate (NGADU) is only a natural uranium from natural source; it was wrongly classified under CET 2845 9010 as 'nuclear fuels not elsewhere included or specified' to BARC, Trombay; Central Excise Tariff Act, 1985, provided for specific heading for natural uranium and its compounds under 2844.1000 chargeable to rate of duty of 16% ad valorem; the HSN also vide Note IV (B)(I)(d) under Chapter Heading 28.44 classifies the Uranates viz., Na2U207 and (NH4)2U207 under Heading 2844; further, in terms of HSN, Uranium Is....

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....ctured and cleared by the respondent under Tariff Subheading No.2844.1000 and dropped the proposal to demand duty and interest on NGADU by extending the benefit of exemption Notification No.3/2005-CE dated 24.2.2005 as amended. On a plain reading of the Notification No.3/2005-CE dated 24.2.2005, it is seen that there is no specific entry granting exemption for NGADU or the specific tariff item No.2844.1000 in the Notification. Therefore, the Order-in-Original No.6/2009 as well as 7,8,9 & 10/2009 dated 25.8.2009 passed by the Commissioner of Central Excise and Customs, Cochin is not legal and proper. 3.1 The learned DR reiterated the grounds of appeal whereas the learned counsel for the respondents claimed that 'Nuclear Fuel' falling under ....

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....ntent)." 4.2 In the light of the description of the term 'Natural Uranium' as above, the Commissioner has found that NGADU manufactured and cleared by the assessee contains 30% moisture and 70% Uranium. From the records it is seen that Uranium contains 0.7% of Uranium 235 and balance is Uranium 238 isotopes. Therefore, it was evident that the composition of the items is in conformity with the description of Natural Uranium as given in HSN. Further, the Commissioner found that among the items listed under Note VIB to Heading 2844 in the HSN, the item is Di-Ammonium Uranate (NH4)2U207 along with Di-Sodium Uranate (Na2U207) finds a specific entry against the Sl. No.1(d) therein as a 'Compound of fissile and fertile chemical element or isotope....