Crushing and pulverising manganese ore may not amount to manufacture, supporting waiver of pre-deposit and stay pending appeal.

Crushing and pulverising manganese ore into smaller lumps and powder was treated, at a prima facie stage, as not amounting to manufacture. The Tribunal relied on cited precedents and the departmental chemist's opinion that the product remained manganese ore, and on that basis found a sufficient case for interim relief. Pre-deposit of duty and penalty was waived and recovery was stayed pending the appeal.

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Issues: Whether the activity of crushing and pulverising manganese ore into smaller lumps and powder was prima facie not manufacture, so as to justify waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The order records that the applicants challenged the duty demand on the ground that the process undertaken did not amount to manufacture, and relied on judicial precedents supporting that view. The Tribunal noted, at the prima facie stage, that the process of crushing and pulverising manganese ore into smaller sizes did not amount to manufacture and found support from the cited decisions as well as the departmental chemist's opinion describing the product as manganese ore.

Outcome: Pre-deposit of duty and penalty was waived and recovery was stayed pending the appeal.

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