Graphite retains its identity after non-chemical processing and remains within the mineral exemption.

Graphite powder and flakes obtained from crude graphite by grinding, washing, froth flotation and pulverisation were treated as the same mineral because the processing involved no chemical change or alteration of the substance. The exemption for natural black minerals was read to cover ordinary forms and varieties of graphite, and a mineral does not cease to be the same commodity merely because it is recovered or concentrated by non-chemical processes. On that basis, graphite in powder and flake form remained entitled to exemption, and the departmental challenge failed.

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Issues: Whether graphite powder and flakes obtained from crude graphite by grinding, washing, froth flotation and pulverisation remained graphite covered by Notification No. 23/55-C.E., or whether such processing took the goods outside the expression "natural black minerals" and the exemption.

Analysis: The exemption notification was read in the context of graphite occurring naturally as well as being capable of synthetic production. The Court relied on the principle that concentration or retrieval of an ore by crushing, washing or similar processes does not by itself amount to manufacture if the chemical structure remains unchanged. Note (2) to Chapter 25 supported the view that the product had to be shown to be excisable before exemption was considered, and the general description of a commodity in fiscal legislation covers its forms and varieties. On that basis, graphite in powder or flake form, obtained from crude graphite without any chemical treatment or structural change, continued to be graphite and fell within the exemption.

Conclusion: The graphite powder and flakes were held to be entitled to exemption under Notification No. 23/55-C.E., and the departmental appeal failed.

Ratio Decidendi: A naturally occurring mineral does not cease to be the same commodity merely because it is recovered or concentrated by grinding, washing or similar non-chemical processes, and a general exemption for the mineral extends to its ordinary forms and varieties unless the product undergoes a change amounting to manufacture.

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