Crushing and grinding alone do not create dutiable excisable goods, so Chapter 25 turnover stayed outside SSI computation.

Goods described as Ramming Mass Normal, Nali Top, Bed Material and Mortar were held to remain in Chapter 25 because they emerged only from crushing and grinding of quartz or non-calcined clay, without a manufacturing process that converted them into refractory goods. On that basis, they were treated as non-dutiable, while only Ramming Mass Premix was regarded as dutiable. As the Revenue did not contest the findings on manufacture and excisability, there was no basis to include the turnover of these goods in SSI exemption computation. The challenge therefore failed.

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Issues: (i) Whether the goods described as Ramming Mass Normal, Nali Top, Bed Material and Mortar were classifiable as excisable goods under Heading 3816 or under Chapter 25, and whether their turnover was to be included for computing SSI exemption.

Analysis: The product was found to emerge only from crushing and grinding of quartz or non-calcined clay, with no binder added in the case of Ramming Mass Normal. On that basis, the process was held not to amount to manufacture of refractory goods. The goods were treated as remaining in Chapter 25, attracting nil duty, while only Ramming Mass Premix was treated as dutiable. Since the Revenue did not challenge the findings on manufacture and excisability, there was no basis to include the turnover of these goods for SSI computation.

Conclusion: The goods were not liable to be treated as dutiable excisable goods under Heading 3816 for SSI turnover purposes, and the Revenue's challenge failed.

Ratio Decidendi: Goods produced merely by crushing or grinding, without a manufacturing process that changes their character into dutiable excisable goods, cannot be included as taxable turnover for SSI exemption computation.

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