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TMI BlogClassification of 'anode slime' and its unconditional exemption under serial no. 195 of Notification No. 12/2012-CE dated17.03.2012.X X X X Extracts X X X X X X X X Extracts X X X X ..... copper processing plants at Silvassa (Dadra & Nagar Haveli) and at Tuticorin (Tamil Nadu). During the refining of 'Copper Anodes' to highly pure 'Copper Cathodes' by the electrolytic process, Anode Slime emerges as a residual by-product. The Anode Slime arising at Silvassa refinery was being cleared on payment of central excise duty to the Tuticorin unit. Thereafter, from Anode Slime, selenium was extracted at Tuticorin unit and the desalinized Anode Slime was exported against cash rebate claim of central excise duty. The Chief Commissioner of Central Excise, Coimbatore Zone having jurisdiction over Tuticorin unit had taken a view that Anode Slime was exempted under serial no. 195 of Notification No. 12/2012-CE dated 17.03.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elenium, Tellurium, Gold, Silver etc. emerges as a residual and saleable by-product. 3. M/s Sterlite Industries (I) Limited have two copper processing units with a smelter and refinery at Tuticorin (Tamil Nadu) and refinery at Silvassa (Dadra & Nagar Haveli). 4. The raw anode slime arising from the refinery is leached and used for recovery of copper left in the slime and for recovery of Tellurium in the form of Copper Telluride. The Anode Slime after recovery of copper and Tellurium may be called Anode Slime (Stage-I). 5. The Anode Slime (Stage-I) left from these two processes is then sent to Tuticorin unit for extraction of Selenium. The Anode Slime (Stage-I) is cleared from Silvassa unit on payment of central excise duty to the Tuticor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstructions and directions to the Central Excise Officers for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods. However, Board cannot exercise power under the said Section so as to require any Central Excise Officer to make a particular assessment or to dispose of a particular case in a particular manner. It was observed that only one assessee had represented for the said clarification and hence Section 37B of the Central Excise Act, 1944 was not applicable. 8. Accordingly, it was decided in October, 2013 not to issue any clarification in the subject matter. The same was conveyed to the Chief Commissioner of Central Excise, Coimbatore Zone vide letter dated 17-2-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 of the subject Writ Petition, the status of these cases are as follows: S. No. Period Amount involved (in Rs.) Present status as per WP filed by the party 1 August 2011 to January 2012 166,83,21,408 Commissioner of Central Excise, Tirunelveli had passed Order-in-Original No. 02/CE/COMMR/2013 dated 13.03.2013 confirming the demand of erroneous paid rebate of ₹ 166,83,21,408. CESTAT has vide order dated 28.01.2014 remanded the matter for de-novo adjudication and is pending with the Commissioner of Central Excise, Tirunelveli. 2 February 2012 & March 2012 35,34,86,306 Pending before Revisionary Authority, Delhi 3 April 2012 6,73,52,902 Pending before Revisionary Authority, Delhi 4 January 2013 to March 2013 31,98,71, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 71 Nil - 14. The above entry in the notification covers two categories of goods. The first category is goods of heading 7105, namely, "dust and powder of natural precious or semi-precious stones". Anode Slime is not dust & powder of natural precious or semi-precious stones. Another category of goods covered under serial no. 195 of Notification No. 12/2012-CE dated 17.03.2012 are covered by heading 7112, namely,"waste and scrap of precious metals or metals clad with precious metals, arising in course of manufacture of goods falling in Chapter 71." 15. It may be noted that the heading 7112 of Central Excise Tariff Act, 1975 covers the following products: (a) Waste and scrap of precious metal or of metal clad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or precious compound'. Since, the exemption is available to only part (a) of the heading 7112, the first condition of the notification is not satisfied. 19. Even though Anode Slime is not covered under that part of the tariff head which is included in the exemption, for analysis, the second condition of the notification is further examined hereafter. The second condition to be satisfied for the exemption is whether this waste and scrap has arisen in course of manufacture of goods falling in Chapter 71. Anode Slime is generated either during the extraction of copper which is not a precious metal or during the further processing of raw Anode Slime when more copper and selenium, tellurium etc. are extracted. None of these materials is con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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