LAKHANPAL NATIONAL LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS is a Revision Application (hereinafter called appeal) to the Central Government against Order -in -Appeal No. C/48 -261/76R dated 15 -12 -1976, passed by Sh. B.K. Doshi, Appellate Collector of Customs, Bombay, which stands transferred to this Tribunal under Section 131 -B of the Customs Act, 1962 (hereinafter called Act), for disposal, as if it were an Appeal presented before it.

(2.) THE appellants through. Minerals and Metal Corporation of India imported 70 tons of 'Manganese Dioxide' Ex. S.S. Giorgis Mathmthees. Vide B.E. No. 2142 dt. 11 -7 -1974, the goods were classified under Item 28 of I.C.T. as it then stood and appropriate duty realised. The appellants claimed refund of duty on the ground that the imported goods are unprocessed ore and should have been classified under Item 26, I.C.T. The Assistant Collector of Customs, Refund, by his order dated 18 -12 -1975, rejected the claim for refund as untenable on the ground that the imported goods were found to be coarse powder composed of about 95 manganese dioxide. In appeal, the Appellate Collector of Customs, Bombay by his Order dated 15 -12 -1976 held that the goods being in the form of coarse powder and not lumps, it was evident that these had undergone further processing after extract. They could not therefore be considered as Ore but could be considered only as chemicals N.O.S. classifiable under Item 28 of I.C.T. with these findings, he dismissed the appeal and upheld the Assistant Collector's order. Aggrieved with the orders, the appellants filed Revision Application to Government of India which, as already pointed out above, stands transferred to this Tribunal to be disposed of as an appeal presented before it.

(3.) AT the hearing, Sh. C.L. Beri, learned Advocate for the appellants, reiterated the grounds set out in the Revision Application. He submitted that the import was through the M.M.T.C. and therefore, there was no cause for suspicion. The documents would show that the appellants had ordered for 'High Grade Manganese Dioxide Ore quality Moanda'. The suppliers of the ore had confirmed that the Manganese Dioxide Ore supplied by them is in conformity with the specifications of the Contract. They had also produced certificate that the ore in question is unprocessed and is not a manufactured or processed material. The ore had not been subjected to any chemical or physio -chemical process such as roasting or treatment with chemicals. It had been subjected only to the normal process of crushing, washing and separation of the extraneous matter which are universally adopted for mining any ore. Crushing is only a physical process and reduction of the particle size by crushing cannot change the basic composition of the material from Ore to Chemical. The Assistant Collector and Appellate Collector were not justified in treating Ore as Chemical simply because it was in the form of powder. Sh. Beri, in support of his arguments relied on M.M.T.C. v. Union of India and Ors, AIR 1972 SC 2551 and Government of India's decision dated 3 -3 -1972.