1972 (8) TMI 46 - SC - Customs

Whether Wolfram Ore W03 65% falls within item 26 which covers metalic ores of all sorts with the exceptions mentioned therein? Held that - It is common ground that the wolfram ore which was imported by the appellants was never subjected to any process of roasting or treatment with chemicals to remove the impurities. It thus remained wolfram ore concentrate containing 65% W03 which was of the merchantable quality and was known commercially as such and imported as ore. Apart from all this it must be remembered that in interpreting items in Taxing Statutes resort should be had not to the scientific or technical meaning but to the meaning attached to them by those dealing in them in their commercial sense. There can, therefore be no manner of doubt that the goods imported by the appellants fell within item 26 of the Import Tariff and no duty was leviable on them. The appellants were entitled to the refund of the amounts which were paid by them by way of duty. Appeals are allowed. The respondents are directed to make appropriate orders for refunding the amounts collected from the appellants by way of duty on the goods in question.

Summary

Issues:
Refusal to refund duty on Wolfram Ore import under Item 87 of Import Tariff.

Analysis:
The appellant entered into a contract for Wolfram Ore with a Moscow concern, meeting the required chemical composition. Import license granted, goods arrived in Bombay, and duty levied under Item 87 at 60%. The appellant claimed refund, arguing the goods fell under different tariff items. The Asstt. Collector held the goods were Concentrate, not Ore, thus assessable under Item 87. Appellate Collector upheld this decision, stating the goods were not simple ores but specially processed. The Govt. Joint Secretary affirmed this view, noting the goods were granules separated from impurities, not qualifying as metallic ore.

The key issue was whether the Wolfram Ore imported fell under Item 26 of the Import Tariff, covering metallic ores. The appellant argued the ore's commercial understanding and merchantable quality containing 65% WO3 classified it as metallic ore. Expert opinions and certificates supported the claim that Wolfram Ore concentrate, even in granule form, remained ore and not a manufactured product. Selective mining processes were highlighted, emphasizing that no chemical treatment or roasting was applied to the imported ore.

The judgment emphasized that interpreting taxing statutes should consider the commercial understanding of the goods, not just scientific or technical definitions. The Wolfram Ore imported by the appellant, meeting the criteria of metallic ore under Item 26, was entitled to a refund of the duty paid. The appeals were allowed, directing the refund of the duty amounts collected, and setting aside the previous orders, including that of the Central Government.