The Karnataka Bench of Authority of Advance Rulings ( AAR ) in an application filed by M/s Jairaj Ispat ltd held that Dalochar is classifiable under Tariff Item 2619 00 90 leviable to 18%.
The classification of product– Dalochar is sought before the present Authority. The product is partly burnt coal (cinder) emerged during the manufacturing process of Iron ore. The physic-chemical properties of Dolochar reveal that it is a type of semi-coke and has poor was ability.
The applicant contends that the product proposed to be supplied falls under Entry 30 of notification No. 1/2017-ITR dated 28.06.2017 under the description ‘Other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste other than fly ash’ attracting a levy of IGST at 18%
The Bench constituting of Shri Harish Dharnia and Ravi Prasad held that Char Dolochar/Dolochar (waste emerging during the process of manufacturing Sponge Iron) supplied by the Applicant is classifiable under Tariff Item 26190090 of Customs Tariff Act, 1975 and in view of Entry 28 of Schedule III of Notification 01/2017-ITR attract GST of 18%.
The Bench further found that the view is supported by the Hon’ble CESTAT decisions of Commissioner, Central Excise and Service Tax, Hyderabad v Reactive Metals of India Pvt Ltd 2018 (8) GSTL 194 (Tri-Hyd) wherein it has been held that Dalochar emerges as a by-product in manufacturing of Sponge Iron and not a fuel manufactured from coal and cannot be classified under Tariff Item 2701 20 90 but under 2619 00 90.
Subscribe Taxscan Premium to view the Judgment
