TaxTMI 
TaxTMI 
2026 (1) TMI 1447
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.... and therefore, are 'Manganese Concentrates'. 2. The brief facts of the case are that the appellants imported 'Manganese Ore' by classifying the same under Tariff item 2602 00 20, which covers 'Manganese Ore (44% or more but below 46%)', claiming exemption from payment of CVD in terms of S.No.56 of Notification No.12/2012-CE dt.17.03.2012. The Bills of Entry were provisionally assessed in terms of section 18(1) of the Customs Act, 1962 and the exemption was extended on submission of PD Bond. On adjudication, the Original Authority denied the exemption benefit and held that since the imported Manganese Ore has been subjected to the process of converting ore into concentrate, the goods lose their identity as ores by virtue of Chapter Note 4 to Chapter 26. But the Original Authority has not dispute the classification under declared tariff item. Thereafter, Commissioner (Appeals) passed stay order dt.06.01.2014 directing the appellants to pay 50% of duty demanded within three weeks of receipt of said order and granting them waiver of balance dues, subject to such pre-deposit. Subsequently, OIA dt.07.02.2014 was passed rejecting the appeal filed by the appellants for non-compliance o....
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....e most important preparatory processes are those aimed at concentrating the ores. For the purposes of headings 26.01 to 26.17, the term 'concentrates' applies to ores which have had part or all of the foreign matter removed by special treatments, either because such foreign matter might hamper subsequent metallurgical operations or with a view to economical transport. Processes to which products of headings 26.01 to 26.17 may have been submitted include physical, physico-chemical or chemical operations provided they are normal to the preparation of the ores for extraction of metal. With the exception of changes resulting from calcination, roasting or firing (with or without agglomeration), such operations must not alter the chemical composition of the basic compound which furnishes the desired metal. The physical or physico-chemical operations include crushing, grinding, magnetic separation, gravimetric separation, flotation, screening, grading, agglomeration of powder (e.g., by sintering or pelleting) into grains, balls or briquettes (whether or not with the addition of small quantities of binders), drying, calcination, roasting to oxidise or magnetize t....
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.... considered as ores only and not concentrate. They have relied on the following judgments. a) Andhra Ferro Alloys Vs Visakhapatnam-Cus [2017 (8) TMI 89 - CESTAT Hyderabad] b) Sharp Ferro Alloys Vs CCT, Visakhapatnam-GST [Final Order No. A/30299/2024 dt.09.05.2024] c) CC Vs Mahendra Kumar Darewala [2016 (340) ELT 277 (Tri-Mum)] d) Universal Electrical Industries Vs CCE [1994 (70) ELT 279 (Tri) - Affirmed by Hon'ble Supreme Court at [2003 (153) ELT 266 (SC)] e) CC (Port) Vs BDG Metal & Power Ltd [Final Order No.77586/2023 dt.22.11.2023 - CESTAT Kolkata] f) Endeka Ceramics India Vs CC [2021 (10) TMI 251] g) Amba River Coke Vs CC [2022 (6) TMI 217] h) Vishwa Glass & Ceramics Vs CC [2024 (11) TMI 843] i) Supreme Glazes Pvt Ltd [OIO No.05/ADC/AV/HAZIRA (IMPORT)/2024-25 dt.04.02.2025] j) Krishna Ceracoats Industries [OIO No. 09/ADC/AB/HAZIRA (IMPORT)/ 2024-25 dt.27.02.2025] 7. Learned Advocate has also relied on the BIS standard i.e., IS 11895:2006, prescribing specification for Manganese ore where specification for different types of Manganese ores has been provided and in respect of Manganese or....
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....HE-CU]. Further, the interest cannot be demanded when the BEs have been provisionally assessed. In this regard, she has relied on the following judgments. a) AS Syndicate (Warehousing) Vs CC [2011 (267) ELT 469] b) CC Vs Exotic Fashions [2010 (262) ELT 651] 9. On the other hand, learned AR has submitted that benefit of exemption notification has been rightly denied to the importers/appellants as the Manganese ores imported by them had admittedly undergone certain specified processes like washing, removal of waste, sizing, etc., as per the requirements of the appellant/importer. Further, in terms of provisions under Note (4) to Chapter 26, w.e.f. 01.03.2011, it provides that in relation to products of this chapter the process of converting ores into concentrate shall amount to 'manufacture'. He has further submitted that in any case of naturally occurring ores, a process of 'beneficiation' of preparation has to be carried out either to enrich the ore content by way of removal of foreign or unwanted elements, or to enrich metal content in the ore. Those processes can be physical, physio-chemical, etc., and includes processes like crushing, grinding, magnetic sepa....
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.... now categorically mentions that the process of converting ores into concentrates would amount to 'manufacture'. Therefore, it cannot now be argued that roasting of ores and converting the same into concentrates would not be manufacture. For the same reason, the judgment in MMTC becomes inapplicable and reliance upon Kirk-Othmer's Encyclopedia becomes irrelevant. With the addition of Note 4, a legal friction is created treating the process of converting ores into concentrates as manufacture. Once this is treated as manufacture, all the consequences thereof, as intended for creating such a legal friction, would automatically follow. Following shall be the inevitable implications : a) It is to be treated that Molybdenum Ore is different from concentrate. That is inherent in treating the process as 'manufacture' inasmuch as manufacture results in a different commodity from the earlier one. Section 2(f) defines this term as under : "manufacture" includes any process, - (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the C....
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....e Tribunal to arrive at the conclusion as to whether goods are ore or concentrate keeping in view the deeming provisions. We find that the various judgments of Coordinate Benches cited by the learned Advocates in support that processes undertaken on the ROM ore are not special treatments and therefore, it would not amount to conversion of ore to concentrate, have not considered or taken into account the judgment of Hon'ble Supreme court in the case of M/s Star Industries Vs CC (Imports), Raigad (supra), and therefore, we do not find ourselves inclined to follow the ratio laid down by such judgments in support that the processes undertaken were not amounting to special treatments. We have already made it clear that the term 'special treatment' has not been defined and it has been considered only in terms of Board's circular dt.17.01.2012. However, on crucial analysis and plain reading of explanatory note, it is obvious that any activity, which is carried out on the ROM ore with an intent to remove foreign matters, either partially or fully, so as to make it useful for metallurgical purposes or for economic transport, the said process itself would amount to conversion and therefore, ....
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.... to be amounting to manufacture in terms of Chapter Note 4 to Chapter 26, it would be obvious that similar process undertaken abroad would also be amounting to deemed manufacturing resulting into a distinct product i.e., concentrate. Incidentally, in this case also, it is Manganese Ore and most of the users of Manganese ore, who are also included in these appeals, are simultaneously buying such ore from MOIL, which has been held to be leviable to Central Excise duty as concentrate. 24. Therefore, keeping in view the observations of Hon'ble Supreme Court in the case of M/s Star Industries Vs CC (Imports), Raigad (supra), when the goods are subjected to a similar activity and therefore, denied exemption in India and charged to Central Excise duty, similar goods having undergone similar processes when imorted would also be not entitled to CVD exemption. We also find force in the citations of the learned AR in the case of Beach Minerals Company Vs CC, Tuticorin [2023 (9) CENTAX 148 (Tri-Mad)]. In this case, it was the case of the department that the appellants have not undertaken any beneficiation process to make the mined sand into processed/upgraded Ilmenite. The Tribunal re....
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....se of reference. 15. Our view is supported by the decision of the Tribunal in the case of VV Minerals Vs. Commissioner of Customs (supra). The Tribunal analyzed the issue in detail and observed as under: "11. We have also seen the sample of both unprocessed and the final product i.e. upgraded Ilmenite and perused the certificate dated 1-3-2013 issued by the Department of Geology & Mines, Government of Tamil Nadu which clearly confirms that appellants are licensed by the Government of Tamil Nadu to export processed/upgraded Ilmenite. Both adjudicating authority and the LAA relied the website literature of another company i.e. Kerala Minerals Ltd. and based their decision only on the issue of roasting and acid wash or chemical treatment. The department also contends that beneficiated ore should be high % of TiO2 which is 'Synthetic Rutile'. We find that the classification of 'Rutile' is separately classified under CH 2614 00 31. Therefore, the department's contention for classifying under Chapter 2614 00 10 is not based on valid reasons and relying another firm's website details cannot be taken as authentic evidence. It might be the process undertaken by the said co....
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....ss flows through different process in slurry form. Output is measured on wet process because it is transported on wet basis (with moisture). Hence the output is more than the input of raw coal. Beneficiation process results in Clean Coal; Middlings; Tailings; and Rejects ... ... ... Conclusion : It is quite clear that beneficiation process (dense media gravity separation and froth floatation) are a physical separation process to separate higher ash coal and lower ash coal, so no chemical changes are there in the coal mineral, as there are no chemical reactions involved during this beneficiation process. Referring below a flow chart [not relevant] ..... From the quantity related table, it is also quite evident that due to addition of water during wet beneficiation, the summation of beneficiated coal product quantity is higher than fed ROM coal quantity." The Apex Court in the above decision clearly spelt out that beneficiation processes are only related to physical separation. The ratio of the Apex Court decision though it was held with respect to coal, the same squarely is applicable to the present case as the principle....
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....decision on 'beneficiation' are applicable to the present case. While classifying the goods whether for import or export the descriptions used in the chapter headings and sub-headings are to be literally applied and no other meaning or assumption can be made. The sub-heading 2614 00 20 only describes Ilmenite upgraded (beneficiated Ilmenite) without any specification. As evident from the findings of LAA the Revenue's trying to put the "Synthetic Rutile" under the above heading is incorrect and not acceptable. Therefore, by respectfully following the Apex Court and High Court decisions referred above, we are of the considered view that the product "Ilmenite" exported by the appellant is rightly classifiable under CH 2614 00 20 of CTH as "Ilmenite upgraded (Beneficiated Ilmenite) and chargeable to appropriate export duty and not under 2614 00 10 of CTH. 13. Accordingly, the impugned order is set aside and the appeal is allowed with consequential benefit." 26. Thereafter, the Tribunal held that goods, which were upgraded/ processed Ilmenite are classifiable under 2614 00 20 and set aside the Revenue appeal. Therefore, in this case also, simple physical process of seg....