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Classification of anode slime and its unconditional exemption under serial no. 195 of Notification No. 12/2012-CE dated17.03.2012.

Classification of anode slime and its unconditional exemption under serial no. 195 of Notification No. 12/2012-CE dated17.03.2012. - Central Excise - F.NO.871/4/2012-CX.1 - Dated:- 14-7-2015 - LETTER [F.NO.871/4/2012-CX.1], DATED 14-7-2015 Background of the matter: 1. A representation dated 25-7-2012 was received in the Board from the Chief Commissioner of Central Excise, Coimbatore Zone regarding classification of 'anode slime' and its unconditional exemption under serial no. 195 of Not .....

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de 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 17.03.2012 and on .....

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process of manufacture: 2. The process of refining of copper consists of two stages. In stage-I, the copper ore concentrate is first converted to blister (98% purity) by smelting and then converted to Copper Anode (99% purity) by reducing the blistered copper in an anode furnace. In stage-II, Copper Anode is refined by electrolysis. Copper Anodes from stage-I are put through electrolytic refining into an aqueous solution of copper sulphate and sulphuric acid. Cathodes are thin rolled sheets of .....

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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 Ano .....

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sa plant does not have such facilities. After extraction of Selenium at Tuticorinunit, there is still potential for recovery of precious metals such as gold and silver from the slime. After extraction of Selenium, the resultant desalinized Anode Slime called Anode Slime (Stage-II) is cleared from the Tuticorin unit on payment of central excise duty using CENVAT Credit and exported for extraction of precious metals. At the time of export, cash rebate (refund) of central excise duty paid is claime .....

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of the party against the said adjudication order was pending in the CESTAT, Chennai. The Board decided not to interfere with the discretion of the Tribunal. (b) Under Section 37B of the Central Excise Act, 1944, Board can issue orders, instructions 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 requir .....

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ion No. 5643 of 2015: 9. M/s Sesa Sterlite Limited has filed a WP No. 5643 of 2015 in the Madurai Bench of Hon'ble High Court of Madras. The Para 4 of the Order dated 15.04.2015 of Hon'ble High Court is reproduced as under: "In view of the limited scope of the prayer, without expressing any opinion on the merits of the issue involved, the second respondent (i.e. Member - Central Excise) is directed to consider the representation of the petitioner dated 26.07.2012, and pass appropria .....

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nal hearing on 22.06.2015. They re-iterated the submissions made before the Madurai Bench of Hon'ble High Court of Madras in WP No. 5643 of 2015 and submitted that they are not covered under serial no. 195 of Notification No. 12/2012-CE dated 17.03.2012. Pending quasi-judicial proceedings: 11. It is observed from the WP No. 5643 of 2015 filed by the party that on the same issue, proceedings for different periods are pending at various stages. As per the details in para 19 of the subject Writ .....

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se, 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 31,98,71,573 Pending before the Commissioner of Central Excise, Tirunelveli 5 April 2013 66,32,053 Pending before Revisionary Authority, Delhi 12. For the period of May 2012 to December 2012, a Show Cause Notice was issued on 22.05.2013 and an Order-in-Original No. 03/CE/COMMR/2014 dated 21.11. .....

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inable. Against the said Order of the Hon'ble High Court, the party has filed Writ Appeal WA No. 82 of 2015 before two member bench of the Hon'ble High Court. Analysis of the issue: 13. The main issue is whether the raw Anode Slime and Anode Slime at Stage -I and Stage-II of processing are dutiable or the same are exempted under serial no. 195 of Notification No. 12/2012-CE dated 17.03.2012, which is reproduced below- S. No. Heading Description of excisable goods Rate Condition 195 7105 .....

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her 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 with precious metal; (b) Other waste and scrap c .....

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e. The question to be examined is whether part (b) of heading 7112 is covered by exemption notification or not. For this to be covered by exemption notification, two conditions should be satisfied viz. (i) item should be waste and scrap of precious metals and (ii) such waste and scrap should arise in the course of manufacture of good of chapter 71. 18. Regarding the first condition i.e. whether Anode Slime is a waste and scrap of precious metal, it is observed that anything can be called as wast .....

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