Limestone cess not leviable on imported limestone where mere mining does not amount to manufacture or production.

Additional duty of customs in the form of limestone cess was found not leviable on imported limestone, because the levy under the Limestone and Dolomite Mines Labour Welfare Fund Act, 1972 was analysed as not extending to these subject imports. The Tribunal also treated mere mining or excavation of limestone as insufficient to amount to manufacture or production, distinguishing simple extraction from conversion into lime or lime dust. On that reasoning, the refund-related relief granted below was upheld and the appeals were dismissed.

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Issues: Whether additional duty of customs in the form of limestone cess was leviable on import of limestone, and whether mere mining of limestone amounted to manufacture or production.

Analysis: The imported goods were assessed provisionally and the respondent sought refund of the cess paid. The levy was examined in the light of the statutory scheme under Section 3 of the Limestone and Dolomite Mines Labour Welfare Fund Act, 1972, together with the charging provisions referred to in the order. The Tribunal noted that the goods were only limestone and that mere mining or excavation of limestone does not amount to manufacture or production. Reliance was placed on the view that mining activity, even with cutting or sizing before sale, does not by itself constitute manufacture or production, and that the distinction between simple extraction and conversion into lime or lime dust is material.

Conclusion: Additional duty of customs in the form of limestone cess was not leviable on the subject imports, and the refund-related relief granted below was upheld. The appeals were dismissed.

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