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Chapter 28 - Inorganic chemicals, organic or inorganic compounds of precious metals, of rare-earth metals, of readioactive elements or isotopes

Notes
    1. Except where the context otherwise requires, the headings of this Chapter apply only to:
    • separate chemical elements and separate chemically defined compounds, whether or not containing impurities;
    • the products mentioned in (a) above dissolved in water;
    • the products mentioned in (a) above dissolved in other solvents provided that the solution constitutes a normal and necessary method of putting up these products adopted solely for reasons of safety or for transport and that the solvent does not render the product particularly suitable for specific use rather than for general use;
    • the products mentioned in (a), (b) or (c) above with an added stabiliser (including an anticaking agent) necessary for their preservation or transport;
    • the products mentioned in (a), (b), (c) or (d) above with an added anti-dusting agent or a colouring substance added to facilitate their identification or for safety reasons, provided that the additions do not render the product particularly suitable for specific use rather than for general use.
    2. In addition to dithionites and sulphoxylates, stabilised with organic substances (heading 2831), carbonates and peroxocarbonates of inorganic bases (heading 2836), cyanides, cyanide oxides and complex cyanides of inorganic bases (heading 2837), fulminates, cyanates and thiocyanates, of inorganic bases (heading 2842), organic products included in headings 2843 to 2846 and 2852 carbides (heading 2849), only the following compounds of carbon are to be classified in this Chapter:
    • oxides of carbon, hydrogen cyanide and fulminic, isocyanic, thiocyanic and other simple or complex cyanogen acids (heading 2811);
    • halide oxides of carbon (heading 2812);
    • carbon disulphide (heading 2813);
    • thiocarbonates, selenocarbonates, tellurocarbonates, selenocyanates, tellurocyanates, tetrathiocyanatodiamminochromates (reineckates) and other complex cyanates, of inorganic bases (heading 2842);
    • hydrogen peroxide, solidified with urea (heading 2847), carbon oxysulphide, thiocarbonyl halides, cyanogen, cyanogen halides and cyanamide and its metal derivatives (heading 2853) other than calcium cyanamide, whether or not pure (Chapter 31).
    3. Subject to the provisions of Note 1 to Section VI, this Chapter does not cover:
    • sodium chloride or magnesium oxide, whether or not pure, or other products of Section V;
    • organo-inorganic compounds other than mentioned in Note 2 above;
    • products mentioned in Note 2, 3, 4 or 5 to Chapter 31;
    • inorganic products of a kind used as luminophores, of heading 3206; glass frit and other glass in the form of powder, granules or flakes, of heading 3207;
    • artificial graphite (heading 3801); products put up as charges for fire extinguishers or put up in fire-extinguishing grenades, of heading 3813, ink removers put up in packings for retail sale, of heading 3824; cultured crystals (other than optical elements) weighing not less than 2.5 g each, of the halides of the alkali or alkaline-earth metals, of heading 3824;
    • precious or semi-precious stones (natural, synthetic or reconstructed) or dust or powder of such stones (headings 7102 to 7105), or precious metals or precious metal alloys of Chapter 71;
    • the metals, whether or not pure, metal alloys or cermets, including sintered metal carbides (metal carbides sintered with a metal), of Section XV; or
    • optical elements, for example, of the halides of the alkali or alkaline-earth metals (heading 9001).
    4. Chemically defined complex acids consisting of a non-metal acid of Sub-Chapter II and a metal acid of Sub-Chapter IV are to be classified in heading 2811.
    5. Headings 2826 to 2842 apply only to metal or ammonium salts or peroxysalts. Except where the context otherwise requires, double or complex salts are to be classified in heading 2842.
    6. Heading 2844 applies only to:
    • technetium (atomic No. 43), promethium (atomic No. 61), Polonium (atomic No. 84) and all elements with an atomic number greater than 84;
    • natural or artificial radioactive isotopes (including those of the precious metals or of the base metals of Sections XIV and XV), whether or not mixed together;
    • compounds, inorganic or organic, of these elements or isotopes, whether or not chemically defined. whether or not mixed together;
    • alloys, dispersions (including cermets), ceramic products and mixtures containing these elements or isotopes or inorganic or organic compounds thereof and having a specific radioactivity exceeding 74 Bq/g (0.002 micro Pct/g);
    • spent (irradiated) fuel elements (cartridges) of nuclear reactors;
    • radioactive residues whether or not usable. The term "isotopes", for the purposes of this Note and of the wording of headings 2844 and 2845, refers to:
    1. individual nuclides, excluding, however, those existing in nature in the monoisotopic state;
    2. mixtures of isotopes of one and the same element, enriched in one or several of the said isotopes, that is, elements of which the natural isotopic composition has been artificially modified.
    7. Heading 2853 includes copper phosphide (phosphor copper) containing more than 15 % by weight ofphosphorus.
    8. Chemical elements (for example, silicon and selenium) doped for use in electronics are to be classified in this Chapter, provided that they are in forms unworked as drawn, or in the form of cylinders or rods. When cut in the forms of discs, wafers or similar forms, they fall in heading 3818.
GST Rates of Goods
Chapter HeadingDescriptionRate of GSTScheduleSr.No
28Thorium oxalate5%I166
38 Micronutrients, which are covered under serial number [1(g)] of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 19855%I56<sup>4</sup>
2809Fertilizer grade phosphoric acid5%I170A<sup>2</sup>
2845Heavy water and other nuclear fuels5%I171
2847Medicinal grade hydrogen peroxide5%I58
2853Compressed air5%I172
28Enriched KBF4 (enriched potassium fluroborate)5%I167
28Enriched elemental boron5%I168
28Nuclear fuel18%I169
28Anaesthetics12%II53
28 Potassium Iodate12%II54
28Steam12%II55
28Micronutrients, which are covered under serial number [1(0] of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order. 198512%II56
28Micronutrients, which are covered under serial number [1(g)] of Schedule 1, Part (A) of the Fertilizer Control Order. 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 198512%II56<sup>3</sup>
28Micronutrients, which are covered under serial number [1(g)] of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 1985 12%II56<sup>4</sup>
28All inorganic chemicals [other than those specified in the Schedule for exempted goods or other Rate Schedules for goods]18%III39
28All inorganic chemicals [other than those specified in the Schedule for exempted goods or other Rate Schedules for goods] [including Fertilizer grade Phosphoric acid]18%III39 <sup>6</sup>
2809Fertilizer grade phosphoric acid12%II57B<sup>5</sup>
2801 20Iodine5%I57
2805 11Nuclear grade sodium5%I170
2804 40 11Medical grade oxygen12%II57A<sup>1</sup>
2835Dicalcium phosphate(DCP) of animal feed grade conforming to IS specification No.5470:20020%-105
Other Exemptions
DescriptionNotification
Exemption from Registration - Small Taxpayers having turnover below threshold limitNotification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old SchemeNotification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New SchemeNotification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST @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. 3/2017-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 CSDNotification 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 ExporterNotification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutionsNotification No. 45/2017-C.T. (Rate), dated 14-11-2017
Departmental Clarifications / Case Law
Industrial Grade Quick Lime having 86% of Calcium Oxide content and Industrial Grade Slacked Lime having 86% of Calcium Hydroxide content, are classifiable under CTH 2825 90 90 and CTH 2825 90 40 respectively, both taxable at 9% CGST and 9% SGST as per entry Sl. No. 38 of Schedule III of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 as amended and G.O. (Ms) No. 62, dated 29-6-2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively. In Re: Palaniappan Chinnadurai, 2019 (21) G.S.T.L. 232 (A.A.R. - GST).
Back Fill Compound
'Back Fill Compound' is prepared by mixing Bentonite Powder, Wood Charcoal Powder and Graphite Powder. Tariff Heading 2508 covers 'Other clays (not including expanded clays of Heading 6806), andalusite, kyanite and sillimanite, whether or not clacined; mullite; chamotte or dinas earths. Bentonite (Crore or other - including processed and ground) is covered under Tariff Heading 2508. However, as per Note I of Chapter 25, the headings of this Chapter do not cover products that have been obtained by mixing. Hence 'Back Fill Compound' would not fall under Tariff Heading 2508.. Tariff Heading 2805 covers `Alkali or alkaline-earth metals; rare-earth metals, scandium and yttrium, whether or not intermixed or interalloyed; mercury'. The applicant has not submitted anything indicating how the product 'Back Fill Compound' can be termed as 'Alkali or alkaline earth-metals or rare-earth metals etc. or mercury, to be covered under Tariff Heading 2805. Therefore, the said product would not full under Tariff Heading 2805. Tariff Heading 3824 covers 'Prepared binders for foundry moulds or cores: chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included'. Accordingly, the product 'Back Fill Compound' merit classification under Tariff Heading 3824. In Re: Doc Sun Power Pvt. Ltd. 2018 (14) G.S.T.L. 94 (A.A.R. -GST)
Quartz powder obtained by crushing quartz stones falls under HSN Code 2806 and would attract 5% rate of tax under GST (2.5% CGST + 2.5% SGST). In Re: Raghav Productivity Enhancers Ltd. 2018 (18) G.S.T.L. 637 (A.A.R. - GST).
Calcium Nitrate Fertilizer is separate chemically defined compound covered under CTH 2834.29 and not as fertilizer under Chapter 31- Commissioner v Pioneer Agritechnoscan & Exports Pvt. Ltd.- 2007 (210) ELT 680 (Tri.-Mumbai).
Potassium Nitrate of Grade 13-0-45 Priled has been mentioned in the Fertilizer (Control) Order. This fact establishes that the goods imported by the appellant are essential fertilizer and not Potassium Nitrate simpliciter, as a separately defined chemical compound. The prime factor required to be decided is as to whether the goods imported by the appellants are Potassium Nitrate in the shape of separate chemically defined compounds or the same, by presence of Sodium and Chlorine, has been converted into a fertilizer. We agree with the submission of the teamed JDR that if the Potassium Nitrate, as a separate chemically defined compound, has been imported by the appellant, then the fact that the same has been used as fertilizer will not take it away from Chapter 28 and put the same under Chapter 28 inasmuch as Chapter 28 specifically mentions Potassium Nitrate. But as already discussed, the goods imported by the appellants are not Potassium Nitrate as a separate chemically defined compound, but are fertilizer, Accordingly, we hold that the Potassium Nitrate Grade 13-0-45 Prilled imported by the appellant, is properly classifiable under Chapter 31. Assam Company Limited v Commissioner 2001 (133) ELT 110 (Tri. - Kolkata). This judgment was maintained by Hon 'ble Supreme Court.
Alumina
Brown fused alumina manufactured not by mere washing and calcinations, but by fusion of calcinated bauxite, coke and iron borings in electric are furnace whereby coke reduced iron dioxide, silicon dioxide and titanium dioxide is classifiable under Chapter 28 of Customs Tariff Act, 1975.- MPR Refractories Limited v Commissioner- 2007 (214) ELT 342 (Tri.- Bang.).
Antimony Oxide used in the manufacture of PVC conveyor fire resistant belting being of non-painter grade is classifiable under Chapter 28 of the Customs Tariff Act, 1975- Fenner (India) Ltd. v Collector- 1996 (88) ELT 305 (SC).
Boric acid
Technical grade pesticides for insecticidal use or Boric acid put up for retail sale or other specified forms as preparations or articles alone is classifiable under CTH 3808 and otherwise under CTH 2810- M.F. (D.R.) Circular No. 34/2007-Cus., dated 17-9-2007.
Calcium Nitrate Fertilizer is separate chemically defined compound covered under CTH 2834.29 and not as fertilizer under Chapter 31- Commissioner v Pioneer Agritechnoscan & Exports Pvt. Ltd.- 2007 (210) ELT 680 (Tri.-Mumbai).
Calcium Tungstate is classifiable under Chapter 28 of Customs Tariff Act, 1975- Rapicut Carbide La. v Collector- 1994 (72) ELT 139 (Tribunal).
Fused Silica is correctly classifiable under CTH 3207 40 00. Similarly, CTH 7002 covers Glass in balls (other than microspheres of Heading 7018), rods or tubes, unworked Hence, Fused Silica in tube form, rods or tubes, unworked, is appropriately classifiable under CTH 7002 31 0() - M.F. (DR.) Circular No. 3/2012-Cus., dated 1-2-2012.
Inorganic chemicals such as, monopotassium phosphate, calcium nitrate, potassium magnesium phosphate will merit classification under Chapter 28 of Customs Tariff Act, 1975- ME. (DR.) Circular No. 44/2001-Cus., dated 6-8-2001.
Mercury is classifiable under (TN 2805.40- Kailash Enterprises v Commissioner, 2003 (135) ELT 548 (Tri.- Chennai).
Micro silica (Silicon dioxide) is classifiable under CTH 28.11- Tehri Hydro Development Co,pn. Ltd. v Commissioner- 2007 (212) ELT 366 (Tri.-Del.).
Vanadium oxy-trichloride and ethyl aluminium sequil chloride used as catalyst in polyoly reactions are classifiable under Chapter 28 or 29 of Customs Tariff Act, 1975.- Herdillia Unimers Ltd. v Commissioner-2000 (122) ELT 504 (Tribunal).