TaxTMI 
TaxTMI 
2019 (10) TMI 618
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....ponge Iron) supplied by him is classifiable under (i) Tariff Item 2621 90 90 of Customs Tariff Act, 1975 and therefore, in view of Entry 30 of Schedule III of Notification 01/2017- Integrated Tax (Rate) dated 28 June 2017 as amended from time to time, attract a levy of 18%. Or (ii) Tariff Item 2701 20 90 of Customs Tariff Act, 1975 and therefore, in view of Entry 158 of Schedule I of Notification 01/2017- Integrated Tax (Rate) dated 28 June 2017 as amended from time to time, attract a levy of 50%? 3. The applicant is engaged in process of manufacturing Sponge Iron and in the process Char- Dolochar/Dolochar emerges as waste products a. The applicant is engaged in process of manufacturing Sponge Iron and Char Dolochar/ Dolochar emerges as waste products. b. For manufacturing of Sponge Iron, Iron ore and Coal are fed into Rotary Kiln, wherein reduction of Iron Ore into Sponge Iron takes place with Coal heat. The Iron ore converts into Sponge Iron while travelling into kiln and comes out. When it comes out, it is having the content of magnetic as well as nonmagnetic or low magnetic materials. The magnetic material is called Sponge Iron and the non-magnetic/low magnetic materi....
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..../2017-lntegrated Tax (Rate) dated 28.06.2017 provides the list of goods that attract IGST at the rate of 5%. Sl.No.43 of the Notification reads as below: 158 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal. 4.5 the Dolchar supplied by them falls within the scope of entry 30 of Schedule III and which attracts levy of IGST at the rate of 18%. 5. The applicant submits that from a bare perusal of the Tariff two competing headings for the classification of Dolochar are Chapter Headings 2621 and 2701. The applicant submits that after coal is put to use in the manufacture of Sponge Iron, Dolochar emerges as a waste and they are clearing the same under Chapter Sub Heading 2619 00 90 of the Central Excise Tariff Act, as Dolochar is not fuel manufactured from the Coal to be cleared under chapter heading 2701 of the Central Excise Tariff Act. 5.1 The applicant submits that though the "Dolochar" contains some unburnt coal and same being used by the brick manufacturers as a fuel in heating the bricks, it cannot be considered as a "fuel manufactured from coal" to classify under heading 2701. Dolochar emerges as a waste in the process of manufacturing Sponge Iro....
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....hen as a briquette or ovoid or similar solid fuel manufactured from coal. Char-dolochar cannot then be classifiable under 2701 20 90. Discernably, the char-dolochar is a byproduct emerging during manufacture of sponge iron and not a fuel manufactured out of coal. 5.6 On the other hand, heading 2619 seeks to cover slag, dross (other than granulated slag), scaling and other waste from the manufacture of iron or steel. There is no dispute that the impugned by-product is emerging during the manufacture of sponge iron. Hence, applying Rule 3(a) of the General Rules of Interpretation CETH 2619 00 90 is the subheading which provides the most specific description for the impugned goods and hence that will have to be adopted. This is being so, the application of Rule 3(b) of the rules and the reasoning of "essential character" of coal fines by the lower appellate authority is misconceived and cannot sustain, and the impugned orders will therefore have to be set aside, which we hereby do." 5.3 The applicant has further relied on the decision of the CESTAT in the case of Bellary Steel & Alloys Ltd. vs CCE, Belgaum reported in 2006 (199) ELT 808 (Tri-Bang.) = 2005 (10) TMI 180 - CESTAT, BAN....
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....i-coke, has poor wash ability and the fixed carbon content of semi-coke reaches 76.11% and the gross calorific value is 28.10 MJ/kg, both of which are similar to those of traditional sinter coke breeze. Also, semi-coke ash possesses lower content of Si02, Al203, S and higher content of CaO and MgO, Semi-coke features well-development porous structure and higher reaction activity. Chemical Composition Elements % Moist. %V.M. %ASH %F.C. C.V.K.Cal/Kg Min. - 1.00 47.00 28.00 3000 Max. 2.0 3.00 - - - Coal is a natural occurring substance, Volatile matter whereas in Coke is prepared material with few impurities and high Carbon content, and very low Volatile matter content which suits it for a better fuel. 7.4 Char-dolachar should not be classified under sub-heading 2701 20 90 as Other Briquettes, ovoid's and similar solid fuels manufactured from coal. Where in briquette or ovoid or similar solid fuel manufactured from coal only. Hence Char dolachar is a by-product emerging during manufacture of sponge iron, and not a fuel manufactured from coal. Therefore byproduct dolochar does not fall under serial 43 of Schedule I of the Notification No. 1/2017-lntegrated Tax ....