9911796707
TMI Blog2015 (11) TMI 901X X X X Extracts X X X X X X X X Extracts X X X X ..... From the process of manufacture that is explained above, it becomes clear that the gold bars are produced from gold mud. Gold mud would be qualified as “any form of gold” and the product in question viz. gold bars, therefore has to be treated as “primary gold”. What is relevant and important is that silver was recovered from anode slime and thereafter gold mud was recovered from silver. Insofar as the product in question viz. gold bars are concerned, these are produced from the gold mud. Thus, gold is converted in the form of bars from gold mud with the aid of power. It is undisputed that gold mud is a form of gold. What is significant to note that the “primary gold” is the end product which is manufactured. The entry clearly descri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pper remaining in the anode slime is removed by leaching with sulfuric acid and then it is filtered to get decompressed anode slime. The flow chart, which shows the stage at which anode slime forms was explained by submitting that from anode slime, silver is recovered, thereafter gold mud and from gold mud, gold bars are produced which are sold in the market. It is on this gold bar, which is the final product, the Revenue wanted to levy excise duty which is @ 16%. The assessee, on the other hand, submitted that the product in question was covered by exemption Notification No. 6/02-CE dated 01.03.2002 attracting nil duty. Serial No.170 thereof in which the product is sought to be included reads as under: S.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter differed with each other. Member(Technical) decided the issue in favour of the assessee taking a view that the product in question was primary gold and, therefore, does not attract to levy of excise duty. Because of this difference of opinion, the matter was placed before the third member who has concurred with the opinion of the technical member holding that the assessee shall be entitled to the benefit of the aforesaid Notification and, therefore, product in question is not liable for any excise duty. We have already re-produced the process of manufacturing of the product viz. gold in question and have also taken note of the exemption Notification. It is clear from the reading of relevant entry in the exemption Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of the process of manufacture and to go through stages of increased concentration of gold before arriving at the stage of primary gold. 13. As we have already held that primary gold comes into existence for the first time in the appellant's factory, there can be no question of 'Conversion' of the same from one form to another. As is seen the expression used in the notification for grant of exemption is 'conversion' from one form to another form. By extracting the gold from the anode Slime which is nothing but the residue of the ore after extraction of copper, it cannot be said that the appellant 'converted' the gold. The expression 'conversion' envisage a situation where the metal to be convert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y us above. The fallacy in the aforesaid argument is to proceed on the basis as if the primary gold is converted from anode slime. We don't have to go back and see the original material from which final product came into existence. What is relevant and important is that silver was recovered from anode slime and thereafter gold mud was recovered from silver. Insofar as the product in question viz. gold bars are concerned, these are produced from the gold mud. Thus, gold is converted in the form of bars from gold mud with the aid of power. It is undisputed that gold mud is a form of gold. What is significant to note that the primary gold is the end product which is manufactured. The entry clearly describes that when the said prima ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
