Cinder Half-burnt Coal / Char Dolachar and ESP / Bag Filter Dust generated during the process of manufacturing Sponge Iron under DRI process is classified under HSN Code “2619 00 90” and attracts 18% GST.
Authority for Advance Ruling — Classification of Cinder Half-burnt Coal – The applicant is a manufacturer sponge iron using coal based manufacturing process. This process involves controlled burning of coal. At the end of the process, certain portion of the coal remains half-burnt (or semi-burnt) and comes along with the finished product i.e. Sponge Iron. This half-burnt portion of coal, technically called “Cinder Half-burnt Coal” / “Char- Dolachar” has negligible fuel content. The applicant sought an advance ruling as to under which HSN Code should the Cinder Half-burnt Coal / Char Dolachar and ESP / Bag Filter Dust generated during the process of manufacturing Sponge Iron under DRI process be classified and would the GST Compensation Cess @ Rs. 400/- per tonne be applicable on sale of waste, i.e. Cinder Half-burnt coal.
Held that:- The Hon’ble Authority for Advance Ruling held that the said commodities fall under HSN Code “2619 00 90” and GST Compensation Cess is not applicable on sale of waste.
Cinder Half-burnt Coal / Char Dolachar and ESP / Bag Filter Dust generated during the process of manufacturing Sponge Iron under DRI process is classified under HSN Code “2619 00 90” and attracts 18% GST.
Authority for Advance Ruling — Classification of Cinder Half-burnt Coal – The applicant is a manufacturer sponge iron using coal based manufacturing process. This process involves controlled burning of coal. At the end of the process, certain portion of the coal remains half-burnt (or semi-burnt) and comes along with the finished product i.e. Sponge Iron. This half-burnt portion of coal, technically called “Cinder Half-burnt Coal” / “Char- Dolachar” has negligible fuel content. The applicant sought an advance ruling as to under which HSN Code should the Cinder Half-burnt Coal / Char Dolachar and ESP / Bag Filter Dust generated during the process of manufacturing Sponge Iron under DRI process be classified and would the GST Compensation Cess @ Rs. 400/- per tonne be applicable on sale of waste, i.e. Cinder Half-burnt coal.
Held that:- The Hon’ble Authority for Advance Ruling held that the said commodities fall under HSN Code “2619 00 90” and GST Compensation Cess is not applicable on sale of waste.