Iron ore pellets and exemption under the Central Excise notification supported prima facie interim relief and stay of recovery.

Iron ore pellets imported by the assessee were treated as prima facie covered by the exemption entry for ores under Notification No. 4/2006-CE, because the tariff description specifically referred to iron ore pellets and the chapter note was read as supporting inclusion of minerals used in the metallurgical industry for metal extraction. On that limited interim basis, the tribunal found a prima facie case for exemption and granted waiver of pre-deposit with stay of recovery pending appeal.

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Issues: Whether iron ore pellets imported by the appellants were eligible for exemption under Notification No. 4/2006-CE, and whether a prima facie case existed for waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The exemption entry covered ores falling under Chapter 26, and the tariff heading for iron ore pellets specifically described the goods as iron ore pellets. The chapter note was also viewed as supporting the assessee because the term ores was treated as covering minerals used in the metallurgical industry for extraction of metals. On that basis, the imported goods were held to fall within the exempted category for the limited purpose of interim relief.

Conclusion: The appellants were found to have made out a prima facie case for exemption and for interim protection, warranting waiver of pre-deposit and stay of recovery.

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