Case Law Details
In case of M/s Star Industries v Commissioner of Customs (Import), Hon’ble Supreme Court while interpreting Notification No.4/2006-CE held that it is an exemption notification where only ‘Ores’ were exempted and if after the process of manufacture, the ‘concentrate’ is generated then the benefit will not be available due to the insertion of Note 4 in the concerned Chapter No. 26. Hence, the CVD will be payable on the import of ‘concentrates’.
Facts of the Case
The assessee has been regularly importing Ore Concentrate and claiming the benefit of the aforesaid Notification No.4/2006-CE. The Customs Department had been extending this benefit. As a result, no CVD was levied under Section 3(1) of the Custom Tariff Act, 1975. However, according to the Department, the Directorate of Revenue Intelligence received some information indicating that the assessee was misdeclaring the product as ‘Molybdenum Ore’ or ‘Roasted Molybdenum Ore’ and on that basis, seeking benefit of exemption under Notification No.4/2006-CE. According to them, Roasted Molybdenum Ore was, in fact, Ore Concentrate which was different from ‘Ores’ and, therefore, benefit of said Notification No.4/2006-CE was not available to the assessee.
The show cause notice was issued by the Department on the basis of the statements taken by the partner of the assessee firm, where he stated that natural ores and ore concentrates are distinct commodities in terms of composition and concentrates are value added products. He further stated that they have declared the goods as Roasted Molybdenum Ore as per the description given in the invoices. The Department proposed to confiscate 59,000 kgs of Ore Concentrate. Also, notice proposed to demand differential duty, interest and penalty.
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