Classification of ores versus concentrates: processing of Run of...

Classification of ores versus concentrates: processing of Run of Mine ore through screening, sizing and crushing resulting in concentrates is treated as manufacture; the transformed material qualifies as distinct excisable goods in light of chapter notes, HSN explanations and deeming provisions, with the consequence that exemption claimed under the relevant notification is not available. Strict construction of the exemption was applied, leading to recovery of differential duty. Delay in payment of duty attracts statutory interest, which is payable alongside the recovered duty.

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