Exemption for mining explosives denied where zinc concentrate manufacture was treated as beginning in the factory, not the mines.

Explosives used in mines for extracting zinc ores were held not to qualify for the benefit of the exemption notifications, because the relevant manufacturing process for zinc concentrate was treated as beginning in the factory and not in the mines. On that basis, the claimed exemption was found inapplicable to the explosives consumed in mining operations, and the rejection of the refund claim was upheld against the assessee.

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Issues: Whether explosives used in mines for extracting zinc ores were entitled to the benefit of the exemption notifications and, consequentially, whether the refund claim was maintainable.

Analysis: The controversy turned on the applicability of the exemption notifications to explosives used in mining operations. The Tribunal relied on the settled position that the process of manufacture of zinc concentrate begins in the factory and not in the mines, and that explosives used in mines for extracting zinc ores do not qualify for the claimed exemption.

Conclusion: The explosives were held not entitled to the benefit of the notifications, and the rejection of the refund claim was upheld against the assessee.

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