2008 (6) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... T) Shri V. Choudhary, DR, for the Appellant. Shri Bipin Garg, Advocate, for the Respondent. [Order per : Rakesh Kumar, Member (T)]. - The respondents in their manufacturing unit at Tirlokpur Road, Kala Amb, Distt. Sirmour, Homachal Pradesh receive Zircon Sand from M/s. Indian Rare Earths Limited and process the same to make "Zirconium Washed Dried Frit (ZDF)". Zircon Sand is fused with Sodium Hydroxide at 600°C temperature, as a result of which a fritty mass containing Sodium Zirconate and Sodium Silicate is formed. This is then leached with water and the resulting slurry contains Zirconium Hydroxide and other impurities as solid and Sodium Silicate and Sodium Hydroxide (regenerated) in Solution. This is filtered and dried and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... arlier classifying ZDF under heading 28.25, but subsequently for claiming area based exemption have suddenly changed their stand and have claimed classification under heading 26.15. (iv) Since the Zircon Sand has been subjected to a chemical process which has changed the chemical structure of the basic compound, in view HSN explanatory Note 1 to Chapter 26, ZDF goes out of the purview of this chapter and, cannot be classified as 'Ore Concentrate'. The product being Zircon Hydroxide, even if crude, would be correctly classifiable under heading 28.25. 2.2 Shri Bipin Garg, Advocate, the learned counsel for the respondents made the following submissions :- (i) The process involved in this case is of concentrating the Zircon Ore by mainl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... respondent's unit, is converted into crude Zirconium Hydroxide. Thus, the Zirconium Silicate present in the Zircon Sand has undergone a change in chemical composition and structure. As per HSN explanatory notes for Chapter 26 (page 213), - "the processes for which products of headings 26.01 to 26.17 may have been submitted, include physical, physico-chemical or chemical operations, provided they are normal to the preparation of the ore for extraction of metal. With the exception of changes resulting from calcinations, roasting or firing, such operations must not alter the chemical composition of the basic compound which furnishes the desired metal". In this case since the process of 'Fusion' is different from calcinations, roasting or f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X