Classification of silver powder and silver alloy powder - Central Excise - 4/88

Classification of silver powder and silver alloy powder Circular No. 4/88 Dated 15-2-1988 [From F.No. 135/2/87-CX.4 ] Subject : Classification of silver powder and silver alloy powder. Doubts have been raised regarding the classification of silver powder and silver alloy powder. 2. The issue was discussed at the South Zone Tariff-cum-General Conference of Collectors of Central Excise held at Madras on 14-7-1987. The Collector of Central Excise, Madurai the sponsoring Collector, explained that silver ingots are mixed with nitric acid and heated to produce pure silver powder which is normally used for welding purposes, the Conference concluded that since silver is in powder form, it cannot be classified under sub-heading 7101.70 as 'articles of silver' and it has to be classified as silver only under sub-heading 7101.31 of the Central Excise Tariff. 3. The matter has been further examined. Silver unwrought or semi-manufactured form or in powder form is covered by Heading 71.06 of HSN. Silver powder is specifically covered by sub-heading 7106.10 of HSN. In the Central Excise Tariff, the descriptions under various sub-headings of Ch. 71 are not aligned with HSN. But the scheme under HSN makes it amply clear that silver in powder form is not to be classified as articles of silver. The description of sub-heading 7101.31 of Central Excise Tariff is 'silver' which normally refers to silver in unwrought form or in powder form. 4. The Chief Chemist has also been consulted in the matter. He has stated that the entry 'silver' against sub-heading 7101.31 would properly cover silver powder also, for one principal reason that the description is unqualified and, by virtue of Note 5 of Chapter 71, the description 'silver' includes a reference to its alloys of the kind in question. 5. The Board agrees with the above views and, accordingly, holds that silver powder and silver alloy powder would be appropriately classifiable under sub-heading 7101.31 of Central Excise Tariff. 6. Trade interests may be informed accordingly.