Case Law Details
Amba River Coke Ltd. Vs Principal Commissioner of Customs (CESTAT Mumbai)
Held that the process of crushing and screening iron ore classified as iron ore fines which were entitled to the benefit of exemption from payment of CVD.
Facts- The appellant engaged in the manufacture of iron ore pellets. One of the raw materials required for the same is iron ore fines. The dispute in the instant appeal relates to the 18 consignments of iron ore fines imported by the appellant from Vale International SA, Switzerland, which had described the goods as Iron ore Carajas Sohar (iron ore fines).
The appellant classified the iron ore fines under CTI 2601 11 31 and claimed exemption from payment of CVD in terms of the notification dated 17.03.2012, which grants complete exemption from payment of excise duty to “ores”. In the course of the investigation, statements of the personnel of the appellant and the Custom House clearing agent were recorded. A show-cause notice dated 20.05.2016 was issued stating that the appellant was not entitled for exemption under entry no. 56 of the notification dated 17.03.2012.
Conclusion- Held that the process of crushing and screening undertaken on Iron Ore after they have been mined at Carajas, Brazil and subsequent blending at Oman with 5-10% iron ore concentrate would result in classification of the goods imported under CTI 2601 11 31 as Iron Ore fines which were entitled to the benefit of exemption from payment of CVD under the notification dated 17.03.2012 and set aside the impugned order passed by the Principal Commissioner. The appeal was allowed.
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