2022 (10) TMI 577 - SCH - Central Excise

Exemption from Excise Duty - Iron Ore and Ore Concentrate - two distinct commercial commodities or one and the same commodity? - applicability of N/N. 13/2000-C.E. - HELD THAT - A similar view was taken by the Tribunal in the case of COMMR. OF CUS. C. EX., JSR BBSR-II VERSUS STEEL AUTHORITY OF INDIA LTD. 2002 (12) TMI 142 - CEGAT, KOLKATA , wherein it was held that the process of obtaining Iron Ore does not amount to manufacture under the Notification dated 1-3-2000. The circular of 26-2-2003 clarifies that the word Ore provided in the Explanation of Integrated Steel Plant in the Notification dated 1-3-2000, also includes Ore Concentrate . There are no ground to interfere with the impugned order passed by the Tribunal - appeal disposed off.

Summary

Issues:
1. Interpretation of whether 'Iron Ore' and 'Ore Concentrate' are distinct commercial commodities.
2. Clarification regarding the definition of 'Integrated Steel Plant' for availing excise duty exemptions.
3. Validity of the circular issued by the Ministry of Finance regarding the inclusion of 'Ore Concentrate' in the exemption notification.
4. Consistency of the Tribunal's decision with past judgments and the circular of 26-2-2003.
5. Consideration of adverse remarks made by the Tribunal about the functioning of the Commissionerate.

Interpretation of 'Iron Ore' and 'Ore Concentrate':
The Customs, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata, deliberated on whether 'Iron Ore' and 'Ore Concentrate' are distinct commercial commodities or considered the same for the purpose of availing excise duty exemptions. The Tribunal concluded that 'Ore Concentrate' can be included under the term 'Ore' as per a circular issued by the Ministry of Finance, thereby allowing integrated steel plants like M/s. Tata Iron and Steel Company Ltd. to avail the exemption under the Notification dated 1-3-2000.

Definition of 'Integrated Steel Plant' and Circular Validity:
The Tribunal determined that M/s. Tata Iron and Steel Company Ltd. qualifies as an 'Integrated Steel Plant' by using a process common to other integrated steel plants, involving the beneficiation of 'Ore Concentrate' after mining 'Iron Ore'. The Tribunal emphasized that the Circular of 26-2-2003 clarified that 'Ore Concentrate' falls under the definition of 'Ore' for the purpose of exemption, ensuring uniformity in interpretation.

Consistency with Past Judgments and Circular:
The Tribunal's decision was supported by a previous ruling in the case of Commissioner of Customs and Central Excise, Jamshedpur and Bhubneshwar-II v. Steel Authority of India Ltd., where it was established that the process of obtaining 'Iron Ore' does not constitute manufacturing under the Notification dated 1-3-2000. Additionally, the Supreme Court upheld a similar order of the Tribunal in a previous case, confirming the consistency of the decision.

Consideration of Adverse Remarks:
While upholding the Tribunal's decision, the Supreme Court noted that adverse remarks made by the Tribunal regarding the functioning of the Commissionerate were unnecessary and thus expunged from the record. The appeal was disposed of accordingly, with pending applications also being resolved.