Zircon sand classification turned on expert evidence, with ore status preserved and exemption benefit upheld.

Expert technical reports showed the imported zircon material had zirconia content of about 62% to 66%, matched the Indian standard for zircon sand, and was described as granular sand of zircon ore. Because zircon concentrate requires chemical processing and zirconia content above 95%, the goods were held to be zircon ore and not concentrate. The exemption under Notification No. 4/2006-C.E. therefore applied, and the demand for additional customs duty was unsustainable. The contrary revenue view failed for want of independent expert material capable of displacing the importer's laboratory evidence.

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Issues: Whether the imported zircon sand was correctly treated as zircon concentrate so as to deny the benefit of Notification No. 4/2006-C.E. and levy additional customs duty.

Analysis: The imported samples were examined by specialist laboratories. The reports recorded zirconia content in the range of about 62% to 66% and described the material as granular sand of zircon ore. The expert correspondence specifically stated that zircon sand typically contains ZrO2 around 64% to 66%, whereas zircon concentrate requires chemical processing and ZrO2 of more than 95%. The imported material also matched the Indian standard for zircon sand. The contrary view of the revenue was not supported by any independent expert material sufficient to displace the technical reports relied upon by the importer.

Conclusion: The imported goods were zircon ore and not zircon concentrate. The assessee was entitled to the exemption under Notification No. 4/2006-C.E., and the demand of additional customs duty was unsustainable.

Ratio Decidendi: Where expert technical evidence shows that imported mineral sand conforms to ore specifications and has not undergone the chemical processing required to become concentrate, the goods remain ore for exemption purposes and cannot be denied the benefit reserved for ore.

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