9911796707
TMI Blog2002 (2) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed by the Commissioner (Appeals) under the impugned order. 2. Shri S.K. Bagaria, learned Advocate, submitted that M/s. SAIL in their Rourkela Steel Plant manufacture, inter alia, iron and steel and products thereof; that one of the products manufactured by them is Cold Rolled Coils which are galvanized by the process of Continuous Hot Dip Galvanising ; that the process of galvanization is as under : Cold rolled coils, carrying a coating of oil, are fed through an oxidizing furnace where oil is burnt out and the steel strip is oxidized by process of flame; the oxidized strip is then passed through a reducing atmosphere of synthesis gas and a thin and clean porous layer is formed on the strip; thereafter this strip is fed into th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as always been sold by them as zinc dross for the purpose of recovery of pure zinc. 3.1 The learned Advocate, further, mentioned that the Assistant Commissioner, under Adjudication Order No. 7/VC/90, dated 26-3-1990, relying upon Notes 3(a) and 3(c) to Section XV and sub-heading Note 1(b) to Chapter 79, held that major chunk of the product is classifiable under sub-heading No. 7901.20 as unwrought Zinc Alloys and very negligible percentage of the product shall be classifiable as zinc dross/residue under Heading No. 26.20 . He submitted that sub-heading 7901.20 covers Zinc Alloys ; that the terms alloy connotes an intentional addition to a metal for the purpose of improving certain properties; that the purpose of such addition of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oys are manufactured with definite compositions of different metals would also be evident, inter alia, from the following - (i) Note 1 (b) and sub-heading Notes (a) to (d) of Chapter 74 of the Tariff. (ii) Sub-heading Note (b) of Chapter 75. (iii) Sub-heading Note (b) of Chapters 76, 79 and 80 of the Tariff 3.4 The learned Counsel mentioned that as per the Explanatory Notes of HSN below Heading No. 79.01, this Heading covers unwrought Zinc in its different degrees of purity from spelter to refined zinc; the products of this heading are normally intended for use in galvanizing (by the hot dip or electro deposition processes), for making alloys for rolling, drawing or extrusion, or for casting into shaped articles; that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R, submitted that the Appellants have made an alloy for the purpose of Zinc Bath and when it is taken out from the Bath, it cannot be termed as residue; that as per Note 3(a) to Section XV, An alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals; that as per the test report, the sample contains 96.5% by weight of Zinc, 1.3% by weight of iron, rest being mainly aluminium and carbon; that this has not been disputed by the Appellants; that further sub-heading Note 1(b) defines Zinc alloys as under : Metallic substances in which Zinc predominates by weight over each of the other elements, provided that the total content by weight of such other elements exceeds 2.5%. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the Central Excise Tariff Act read as under : 2620.0 Ash and residues (other than from the manufacture of iron or steel) containing metals or metallic compounds 79.01 Unwrought Zinc 7901.10 Zinc, not alloyed 7901.20 Zinc alloys 6. The learned Advocate has submitted that the impugned goods taken out of Bath is classifiable under Heading 26.20 as Explanatory Notes of HSN specifically excludes ash and residue from Heading 79.02. On the other hand Revenue has classified the same under Heading 79.01. We observe from the Explanatory Notes of HSN below Heading 26.20 that this heading covers ash and residues, which contain metal or metal comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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