STAR INDUSTRIES Vs. COMMISSIONER OF CUSTOMS (IMPORTS) RAIGAD

JUDGEMENT

(1.) The appellant (hereinafter referred to as the 'assessee') is engaged in the manufacture of Ferro-Alloys falling under Chapter 72 of Central Excise Tariff. One of the inputs for manufacture of Ferro-Alloys is Roasted Molybdenum Ore/Concentrate. The assessee has been regularly importing the aforesaid material i.e. Roasted Molybdenum Ore/Concentrate (hereinafter referred to as the 'Ore Concentrate').

(2.) It is not in dispute that the import of Ore Concentrate is, otherwise, subject to additional duty of custom i.e. countervailing duty (CVD) in addition to normal custom duty. However, vide Notification No. 4/2006-CE dated March 01, 2011, which is a general exemption notification, various items, either fully or partially, exempted from payment of excise duty. One of the items described in this notification is 'Ores' which is mentioned at Sl. No.4 and the excise duty payable is Nil. In case, the aforesaid goods imported by the assessee, namely, 'Ore Concentrate' falls within the aforesaid entry, as a fortiori, no CVD would be payable on the import of this item. The question, therefore, that arises is as to whether the 'Ore Concentrate' imported by the assessee is eligible for complete exemption from payment of additional duty of custom/CVD under Notification No.4/2006-CE dated March 01, 2006. The answer to the aforesaid question would depend upon the answer to another incidental question, namely, whether the 'Ore Concentrate' imported by the assessee can be treated as 'Ores' mentioned in Notification No.4/2006. To put it otherwise, whether Molybdenum Ore after it undergoes the process of being roasted and comes to be known as Ore Concentrate still remains Ores.

(3.) Before we attempt to answer the aforesaid question(s), we deem it apposite to visit those fundamental facts that will have bearing on the issue involved.