Clarification in respect of Notification No. 13/2000-CE dated 01.03.2000 granting exemption of Central Excise Duty to "Integrated Steel Plant" - Central Excise - 696/12/2003

CIR NO.696/12/2003-CX, DT. 26/02/2003 Clarification in respect of Notification No. 13/2000-CE dated 01.03.2000 granting exemption of Central Excise Duty to "Integrated Steel Plant" I am directed to say that a doubt has arisen regarding the meaning of word "Integrated Steel Plant" given in the explanation to the exemption Notification No. 13/2000-CE dated 1.3.2000. The explanation states that to be designated as an "Integrated Steel Plant" the manufacture should start from the stage of the ore in the plant premises itself. The dispute now centres around the interpretation of the word "ore". Trade has represented that the raw ore is excavated through a mining process and mines can never be a part of an integrated steel plant because of so many reasons like, safety (ores have to be extracted through blasting) and logistics. Therefore, the normal practice is that after mining, the ore is cleaned and washed and physically transported to the integrated steel plant, where the manufacturing process commences. However, field formation have taken the view that after washing and cleaning, the product no longer remains "ore" but becomes "ore concentrate" and as per heading 26.10, Ore and Ore Concentrate are two different excisable commodities. Thus, since in this case, the processing start from the stage of Ore Concentrate not ore. The benefit of exemption would not available to them. The view of Integrated Steel Plant is simply by washing and cleaning the iron ore, it does not lose its identity-as an-Ore. 3. To remove the confusion, it is clarified that the word "Ore" given in the meaning of "Integrated Steel Plant" also includes "Ore Concentrate" in the explanation to the said notification. 4. Trade and field formations may be informed accordingly. 5. Receipt of the same may please be acknowledged. F.No.139/8/2002-CX.4