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2019 (3) TMI 1525 - AT - CustomsExport of Iron ore concentrates - benefit of N/N. 62/2007-Cus dated 3.5.2007 - appellants contend that ‘Iron ore concentrate’ is nothing but enriched and prepared ore and covered by the word “Ores” appearing in T1 26; “Ore” is the genus and “concentrate” is the species. Whether the “iron ore concentrate” exported by the Appellants can be treated as “Iron Ore” and whether the Appellants are eligible for the N/N. 62/2007-Customs dated 03.05.2007? Held that:- The Appellants’ sister concern is engaged in carrying on the business of Iron Ore mining and export of Iron Ore as such or after processing. This activity generated large quantities of tailing / waste and rejects which have no commercial value due to low Fe contents and thus unviable for both exports and domestic application. The Appellants have made use of this waste abundantly available and having a low range of Fe i.e. 30 to 40% into a commercially viable one. For this they have adopted the process of beneficiation and magnetic separation of the particles having very low Fe contents. The aforesaid activity resulted in Iron Ore concentrates which the Appellants declared to be Iron Ore concentrates. These processes apparently are not those which are not normal metallurgical operations so as to take the product away from the domain of Chapter 26 and they do not alter any chemical composition. It is pertinent to note that the application made by the Appellants to set up a 100% EOU for export of Iron Ore having Fe contents + 58%. The project report further mentions that the unit would concentrate the Iron Ore - the process undertaken by the Appellants are not those which are not normal to the metallurgical industries - In view of the Chapter notes to Chapter 26 of Custom Tariff Act, 1975, it has to be concluded that Ores includes concentrates. Therefore the benefits of notification 62/2007 is applicable to concentrates also. Having held that the exemption available to Ore is also available to concentrates, the procedural infractions cannot take away benefit when substantial compliance is not disputed and when the Tariff recognizes the description mentioned in the Notification and the description mentioned in the Shipping Bill and Other Documents. Appeal allowed - decided in favor of appellant.
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