Use of explosives in mining treated as connected to manufacture, making the exemption notification available to the assessee.

Prepared explosives used in mining copper ore were treated as goods used in relation to the manufacture of copper concentrates, because mining was found to be closely and integrally connected with the production process. Applying the earlier Tribunal view, the use of explosives at the mining stage was accepted as satisfying the notification condition. The benefit of Notification No. 191/87-C.E. dated 4-7-1987 was therefore held admissible to the assessee, and the Revenue's appeal was rejected.

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Issues: Whether prepared explosives used in mining copper ore were eligible for the benefit of Notification No. 191/87-C.E. dated 4-7-1987 as goods used in relation to the manufacture of copper concentrates.

Analysis: The prepared explosives were used by the buyer in mining copper ore, and the mined ore was the raw material for copper concentrates. The activity of mining was treated as closely and integrally connected with the manufacture of copper concentrates. Following the earlier Tribunal view relied upon by the respondent, the use of explosives in mining was held to be use in relation to manufacture for the purpose of the notification.

Conclusion: The benefit of Notification No. 191/87-C.E. dated 4-7-1987 was held available to the assessee, and the Revenue's appeal was rejected.

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