Circular No 553/49/2000-CX
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, the 18th October, 2000.
Subject :- Classification of LD Slag arising in bulk in Steel plants – regarding.
A doubt has been raised whether LD Slag arising in bulk in Steel plants would be classifiable under sub-heading 3103.00 as mineral or chemical fertilizers, phosphatic or under heading 2619.00 as slag, dross (other than granulated slag), scalings and other waste from manufacture of iron or steel.
2. The issue has been examined. LD Slag is generated during manufacture of Liquid steel through oxidation process in LD converters/induction furnances. IT is essentially a mixture of impurities in the form of oxides of iron, silica, alumina and dust etc., it is hard, blackish in colour and in lumps. LD Slag as such has reportedly no use as fertilizers. The item can be used as soil conditioner only after crushing/washing and adding rock phosphates etc. At the point of clearance of the LD Slag the item has no identity as fertilizers. Classification of the goods has to be done on the basis of the condition in which the goods are removed. Since the goods manufactured and removed are only LD Slag, they are appropriately classifiable under chapter 26.
3. The issue was also discussed in the Chief Commissioners” conference held at Mumbai on 29th and 30th August, 2000. Taking note of the practice of assessment in most of the steel plants in different Zones, the Conference agreed that the existing practice of assessment under sub-heading 2619.00 should continue.
4. Board has accapted the decision of the Conference. It is, therefore, clarified that LD Slag arising in bulk in Steel Plants is classifiable under sub-heading 2619.00 and chargeable to appropriate rate of duty.
5. The above clarification may be brought to the notice of the lower field foundation and the trade interests may also be suitably advised.
6. All pending disputes/assessments on the issue may be settled in the light of these guidlines.
7. Receipt of this circular may please be acknowledged.
8. Hindi version will follow.
(RENU K. JAGDEV)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA