Mill scale is the flaky surface of hot rolled steel, iron oxides consisting of iron oxide, hematite
and magnetite. Mill scale is formed on the outer surfaces of plates, sheets or profiles when they are
being produced by rolling red hot iron or steel billets in rolling or steel mills. Mill scale is composed of
iron oxides mostly ferric and is bluish black in color.
It is usually less than a millimeter thick and initially adheres to the steel surface and protects it from
atmospheric corrosion provided no break occurs in this coating. Because it is electro-chemically cathodic to steel, any break in the mill scale coating will cause accelerated corrosion of
steel exposed at the break. Mill scale is thus a boon for a while until its coat breaks due to handling
of the steel product or due to any other mechanical cause
and magnetite. Mill scale is formed on the outer surfaces of plates, sheets or profiles when they are
being produced by rolling red hot iron or steel billets in rolling or steel mills. Mill scale is composed of
iron oxides mostly ferric and is bluish black in color.
It is usually less than a millimeter thick and initially adheres to the steel surface and protects it from
atmospheric corrosion provided no break occurs in this coating. Because it is electro-chemically cathodic to steel, any break in the mill scale coating will cause accelerated corrosion of
steel exposed at the break. Mill scale is thus a boon for a while until its coat breaks due to handling
of the steel product or due to any other mechanical cause
Suppose total burning loss is 10.000 MT Mill Scale Waste should be around-5 MT
ER-1
CETSH
|
Description
|
Op. Bal
|
Qty Mfg
|
Qty Cleared
|
Clos Bal
|
Value
|
72044100
|
Mill Scale Wastage
|
00
|
00
|
5000
|
00
|
5000
|
Duty
|
Rate
|
Amt
|
||||
Excise duty
|
12.00
|
600
|
||||
Cess
|
2.00
|
12
|
||||
H.E.Cess
|
1.00
|
6
|
ER-6
4. Detail of Waste & Scrap arising during manufacture and
cleared/waste
Sr#.
|
Description of goods
|
Quantity Code
|
Cleared
|
Destroyed
|
1
|
Burning Loss
|
Kg
|
5000
|
10000
|
Remarks: Quantity destroyed against burning loss is
inclusive of generation of quantity of Mill Scale Wastage
Whether Mill Scale Wastage can be cleared under S.Heading 26190090 as being suggested by C.E. Officer ?
As per C.E. Duty is concerned this can be also be cleared Under S.H.. 26190090 ( Scaling and other waste from manufacture of iron and steel) . In fact mentioning Scaling and OTHER waste in this S.H. indicate that this scaling also include OTHER waste not Iron and Steel alone. So this can be the right S.H. BUT PROBLEM will be on the rate of VAT. If this is cleared under 26190090 the rate of Vat will be 13.% plus surcharge total 14.30%. To avoid VAT complication it will be proper to clear under S.H. 72044100 being declared goods under section 14(iv) of CST Act.
Whether Mill Scale Wastage can be cleared under S.Heading 26190090 as being suggested by C.E. Officer ?
As per C.E. Duty is concerned this can be also be cleared Under S.H.. 26190090 ( Scaling and other waste from manufacture of iron and steel) . In fact mentioning Scaling and OTHER waste in this S.H. indicate that this scaling also include OTHER waste not Iron and Steel alone. So this can be the right S.H. BUT PROBLEM will be on the rate of VAT. If this is cleared under 26190090 the rate of Vat will be 13.% plus surcharge total 14.30%. To avoid VAT complication it will be proper to clear under S.H. 72044100 being declared goods under section 14(iv) of CST Act.
