TMI Blog2004 (8) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... ss Act is not applicable on Iron Ore Pellets imported by them and claimed refund of Cess paid, on BEs dated 5-10-1994 to 3-4-1995 amounts to Rs. 4,67,590/-. 2. Department issued a show cause notice dated 28-6-1995, proposing to reject the term refund claims so filed on the grounds - Whereas cess is leviable on imported goods under provisions of Section 3 (1) (b) of the Iron Ore Mines and Manganese Ore Mines Labour Welfare Cess Act, 1976 (Act No. 55 of 1976) being levied as Excise duty on imported iron ore pellets read with Section 3(1) of Customs Tariff Act, 1975 countervailing duty levied in terms of Section 3(1) of Customs Tariff Act, 1975 has to be equal to the excise duty for the time being leviable or a like article if produced or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch normal to the metallurgicals industry and hence iron ore pellets are squarely covered by the definition of "Ores" by virtue of Chapter Note 2 to the Chapter 26 of the Customs Tariff. It is seen from the records of the case that the party has also sought clearance of iron ore pellets as iron ores under Heading 26.01 and has not disputed about the same anywhere in their argument which would be pertinent to note in this context. I have also observed that the classification of indigenous iron ore pellets is done under Chapter Heading 26.01 of C. Ex. Tariff Act, 1985 as 'Iron Ores and concentrates including roasted iron pyrites'. Chapter Note 2 to the Chapter 26 of CETA, 1985 squarely covers the iron ore pellets as 'Iron Ores' which has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dremukh Iron Ore Company Ltd., Mangalore who supply iron ore pellets to the party i.e. M/s. Vikram Ispat pay cess @ Re. 1/- P.M.T. while clearing their goods for home consumption. The said company being 100% E.O.U. the effective rates of duty on clearances of their goods for home consumption are governed by C. Ex., Notification No. 101/93-C.E., dated 27-12-1993. It is seen from the text of the said Notfn. that it exempts all excisable goods specified in the Schedule to the CETA, 1985 and produced or manufactured in a 100% EOU or a free trade zone and allowed to be sold in India from so much of duty of excise leviable or under section 3 of Central Excises and Salt Act, 1944 as is the excess of the amount calculated at the rate of 50% of each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classifiable under the same Ch. Heading 26.01 and the process of importance here is the production from a mine. Hence Iron Ore pellets are amply covered by the phrase 'Iron Ore produced in any mine' used in the Cess Act. Hence cess is leviable on Iron Ore pellets imported into India. In appeal the CC (Appeals) found - I have carefully gone through the records of the case and heard the appellant. However, I am unable to accept that iron ore pellets are different from iron ore compact and gives it a shape. Agglomeration of iron ore does not change physical or chemical properties of the iron ore. It only enhances ease of handling the ore. In my view no new product is brought into existence and pelletisation does not amount to manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f sub-clause (b) of clause (i) or sub-clause (b) of clause (ii) all the iron ore or manganese ore, as the case may be, produced in the mine and not sold or otherwise paid of to the occupier of any other metallurgical factory or to any other person shall be declared unless the contrary is proved to have been used by such owner for his own metallurgical factory" This Act 55 of 1976 also does not define "Iron Ore" or a metallurgical factory, however vide Section 6, thereof it empowers the Central Government to exempt 'a metallurgical factory' or a class of 'metallurgical factories' for the reasons therein (b) Ores as mined and brought out of mother earth are normally of accepted merchantable quality, only after they are usable as ores, by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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