Chapter 26 - Ores, slag and ash

Notes

1. This Chapter does not cover:

(a) slag or similar industrial waste prepared as macadam (heading 2517);
(b) natural magnesium carbonate (magnesite), whether or not calcined (heading 2519);
(c) sludges from the storage tanks of petroleum oils, consisting mainly of such oils (2710);
(d) basic slag of Chapter 31;
(e) slag wool, rock wool or similar mineral wools (heading 6806);
(f) waste or scrap of precious metal or of metal clad with precious metal; other waste or scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal (heading 7112); or
(g) copper, nickel or cobalt mattes produced by any process of smelting (Section XV).

2. For the purposes of headings 2601 to 2617, the term "ores" means minerals of mineralogical species actually used in the metallurgical industry for the extraction of mercury. of the metals of heading 2844 or of the metals of Section XIV or XV, even if they are intended for non-metallurgical purposes. Headings 2601 to 2617 do not, however, include minerals which have been submitted to processes not normal to the metallurgical industry.

3. Heading 2620 applies only to:

(a) slag, ash and residues of a kind used in industry either for the extraction of metals or as a basis for the manufacture of chemical compounds of metals. excluding slag, ash and residues from the incineration of municipal waste (heading 2621); and
(b) slag, ash and residues containing arsenic, whether or not containing metals, of a kind used either for the extraction of arsenic or metals or for the manufacture of their chemical compounds.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
2601	Iron ores and concentrates, including roasted iron pyrites	5%	I	139
2602	Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight.	5%	I	140
2603	Copper ores and concentrates.	5%	I	141
2604	Nickel ores and concentrates.	5%	I	142
2605	Cobalt ores and concentrates.	5%	I	143
2606	Aluminium ores and concentrates.	5%	I	144
2607	Aluminium ores and concentrates.	5%	I	145
2608	Zinc ores and concentrates.	5%	I	146
2609	Tin ores and concentrates.	5%	I	147
2610	Chromium ores and concentrates.	5%	I	148
2611	Tungsten ores and concentrates.	5%	I	149
2612	Uranium or thorium ores and concentrates.	5%	I	150
2613	Molybdenum ores and concentrates.	5%	I	151
2614	Titanium ores and concentrates.	5%	I	152
2615	Niobium, tantalum, vanadium or zirconium ores and concentrates.	5%	I	153
2616	Precious metal ores and concentrates.	5%	I	154
2617	Other ores and concentrates	5%	I	155
2618	Granulated slag (slag sand) from the manufacture of iron or steel	5%	I	156
2619	Slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel	18%	III	28
2620	Slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds	18%	III	29
2621	Fly ash	5%	I	156A<sup>1</sup>
2621	Other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste	18%	III	30
2621	Other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste [other than fly ash]	18%	III	30<sup>2</sup>
26[other than 2619, 2620, 2621]	All ores and concentrates [other than slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel; slag, ash and residues (other than from the manufacture of iron or steel) containing metals, arsenic or their compounds; other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste]	5%	I	138
26	Uranium Ore Concentrate	0%	-	103A<sup>3</sup>

Other Exemptions

Description	Notification
Exemption from Registration _ small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore- Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore-New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 32017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Brass Ash is classifiable under CTH 2620.90- Collector v Shankar Metal Trading Co.- 1992 (60) ELT 154 (Tribunal).

Brass Residue

yellowish metallic powder of fine sharings and drillings arising out of metallic working of metals is not an 'Ash or residue' and hence falls outside the CTH 26.20- C.L. Gupta and Sons v Collector —1997 (90) ELT 124 (Tribunal).

Copper Alloy

Alloy of copper and zinc together with nickel and in the nature of metallic powder of fine sharing and drilling are not classifiable under CTH 26.20 nor classification under Heading 74.02 appropriate.-C. L Gupta and Sons v Collector- 1997 (90) ELT 124 (Tribunal).

Battery Waste

It is clear from this that, what is covered under Chapter 7802.00 as waste and scrap of lead is the one which comprises mostly of metal waste and scrap. The goods on test have been found to be comprising of lead oxide 72.9% and lead 9.2%. This certainly cannot be considered as metal waste and scrap but a chemical waste which has some lead content in it. The term 'battery waste' obviously goes by a specific name in the Trade falling under Tariff Heading 26.20, Sidharth Pigments (P) Ltd. v Collector 1996 (82) ELT 316 (Tribunal).

Zinc Dross

We observe from the Explanatory Notes of HSN below Heading 26.20 that this heading covers ash and residues, which contain metal or metal compounds and which are of a kind used in industry either for the extraction of metal or as a basis for the manufacture of chemical compounds. They result from the treatment of ores or intermediate metallurgical products (such as matters) or from electrolytic, chemical or other processes which do not involve the mechanical working of metal. It is not case of the Appellant that the impugned product is as a result of treatment of ores or from intermediate metallurgical products. It has not been controverted by the Appellants that an alloy of Zinc is made for Zinc Bath. It has been mentioned by the Appellants that a large quantity of Molten Zinc in free form is scooped out of Zinc Bath. The Revenue has classified the said product under Heading 79.01 of the Central Excise Tariff as it is nothing but Zinc Alloy. It is evident from the Chemical Test Report that it conforms to the definition of Zinc Alloys as given in sub-heading Note 1(b) to Chapter 79 of the Tariff. Once the product conforms to the description given in the heading and chapter note, classification of the product has to be done accordingly. It is provided in Rule 1 of the Interpretative Rules that "classification shall be determined according to the terms of the headings and any relative section or chapter notes". The learned Advocate has referred to exclusion clause in Explanatory Notes of HSN below Heading 79.02, which provides that ash and residues from the manufacture of Zinc, from galvanizing processes, etc. (e.g. sludges deposited in electrogalvanising, and metallic residue from dipping tanks) (Heading 26.20). This Explanatory Note is not applicable inasmuch as it is below Heading 79.02, which covers Zinc Waste and Scrap, and moreover the product, which has been classified under Heading 7901.20 under the impugned order, is neither Ash nor Residue. — Steel Authority of India Ltd. v Commissioner, 2002 (142) ELT 449 (Tri. - Kolkata).