Classification of magnetic ferrite with a binder (in the form of power/pellet) - Central Excise - 12/89

Classification of magnetic ferrite with a binder (in the form of power/pellet) Circular No. 12/89 Dated 15-2-1989 . [From F. No. 126/1/89-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of magnetic ferrite with a binder (in the form of power/pellet). A question had been raised as to what should be the appropriate classification of the chemical product known as 'magnetic ferrite with a binder (in the form of powder/pellet)' which arises at an intermediate stage in the course of manufacture of permanent magnets or articles intended to become permanent magnets after magnetisation. 2. The matter was discussed at the West Tariff-cum-General Conference of Collectors of Central Excise held at Bombay on 28-7-1988. It was pointed out at the said Conference that, for the purpose of manufacture of the above mentioned product, iron-oxide, barium carbonate, strenium carbonate etc. are fed into the ball mill for making fine particles by a wet grinding process. The slurry is stored for making a homogeneous mix. The slurry is filtered and pressed to remove water contents. The slurry cakes obtained are then fed into the drying oven to remove the water contents completely. The material is pulverised to give small particles. These particles are then calcinated to give a chemical effect. These calcinated materials are pulverised and stored in a slurry tank, filtered, pressed and dried. At this stage, a chemical product known as 'magnetic ferrite with a binder (in the form of powder/pellet)' emerges. The Conference concluded that the said product would be classifiable under heading No. 38.23 and that if such product is captively consumed for manufacture of a dutiable product under heading No. 85.05, no duty is recoverable in terms of notification No. 217/86-C.E. 3. The Board agrees with the above decision of the Conference. The Board also observes that the product 'magnetic ferrite with a binder, in the form of powder or pellets' has been classified under the corresponding HSN heading No. 38.23 as per HSN Explanatory notes under HSN Heading No. . 85.05 (page 1341). Accordingly, it is hereby clarified that the aforementioned 'magnetic ferrite with a binder in the form of powder/pellets' would be appropriately classifiable under sub-heading No. 3823.00 of the CET from 10-2-1987 onwards (under sub- heading No. 3801.90 of the CET during the period from 28-2-1986 to 9-2-1987). 4. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably informed. 5. All pending assessments may be finalised on the above basis.