Central Excise - Manufacture of cast iron powder out of cast iron granules (72.05) / cast iron and borings (72.04) - Whether the process involved amounts to manufacture - Clarification regarding - Central Excise - 94/5/95-CX

Central Excise - Manufacture of cast iron powder out of cast iron granules (72.05) / cast iron and borings (72.04) - Whether the process involved amounts to manufacture - Clarification regarding Circular No. 94/5/95-CX. Dated 23-1-1995 [From F. No. 139/20/94-CX.4] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Manufacture of cast iron powder out of cast iron granules (72.05) / cast iron and borings (72.04) - Whether the process involved amounts to manufacture - Clarification regarding. Certain doubts have been expressed as to whether manufacture of cast iron powder out of cast iron granules (72.05)/cast iron turnings and borings (72.04) amounts to manufacture for the purpose of Section 2(f) of the Central Excises Salt Act, 1944. At some places, a view has been taken that manufacturing cast iron powder, out of cast iron granules (72.05) would not amount to manufacture, as both of them are classifiable under Heading 72.05 of the Schedule to the Central Excise Tariff Act, 1985. 2. For the purpose of manufacturing cast iron powder, borings and turnings (7204.10) or cast iron granules (72.05) are received as inputs. Impurities are removed from the inputs by passing it through an electrically operated magnetic separator. Since some particles, oxides etc., are fused with the metals, these are subjected to the process of pulverisation and finally passed through sieves of various sizes to separate powder as per their sizes. The resultant product is cast iron powder and is reportedly used for chemical reaction in order to generate hydrogen gas and required for reduction purposes. 3. The matter has been examined by the Board. Attention is drawn to Section Note 6(a) and (b) of Section XV which contain the definition of wastes and scrap and powders. Further, Chapter Note 1(h) of Chapter 72 defines granules. Although granules and powders of pig iron, spiegeleisen, iron or steel are classifiable under Heading 72.05 yet granules, powders and waste and scrap have their own specific definitions and are known distinctly in end use and character. The Board is, therefore, of the view that conversion of cast iron granules/cast iron turnings and borings into cast iron powder amounts to manufacture for the purpose of Section 2(f) of Central Excises Salt Act, 1944 and that cast iron powder so manufactured is dutiable again. 4. Trade and field formations may be advised suitably.