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TMI Blog2000 (12) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... e Schedule to the CETA 1985 without payment of duty for use in the manufacture of zinc and lead concentrate in terms of Notification No. 191/87, dated 4-7-1987. The mines belonging to the respondents were issued CT-2 certificates for obtaining explosives falling under Chapter 36 without payment of duty. On a study of the process of use of explosives, it was observed that detonators and detonating fuses are being used to blast the mines to obtain zinc and lead ore through drilling and blasting and subsequent process such as crushing, grinding, flotation and filtration etc. were carried out to obtain zinc and lead concentrates. The Department was of the view that this use of explosive was not used in the manufacture of lead or zinc concentrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rge in the show cause notice and confirming the duty demand raised therein. Hence these appeals. 2. We have heard Dr. D.K. Verma, learned DR and S/Shri G. Shiv Das and M.P. Devnath, learned Advocates and perused the records. The process of manufacture of zinc concentrates as explained by the assessees, is as under : Zinc or lead ore is extracted from the mines by explosives by the process of drilling and blasting; zinc or lead thus procured is first crushed and then ground; As the zinc ore are generally low in the zinc contents, they must be concentrated for direct reduction and further floated in the slurry form to obtain the concentrate by a chemical process and further upgraded to get zinc oxide. 3. Copper concentrate is manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in the said Schedule : Provided that where such use is elsewhere than in the factory of production, the procedure set out in Chapter X of the said Rules is followed. 5. The objection of the Revenue is that explosives are not directly used in the manufacture of zinc concerntrates and copper concentrates. 6. However, we note that the activity of mining is integrally connected with the activity of manufacture of the final product from the ore generated as a result of mining and the two processes are inter-dependent. Therefore, the explosives used for blasting mines in order to remove the ore which is raw material for the manufacture of zinc oxide are to be considered as in the manufacture of the concentrates. This view finds su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Indian Copper Corp. (relied upon by the assessee) is in the context of Sales Tax law and cannot be relied upon to interpret a Central Excise Notification, is not tenable in the face of the decision of the Larger Bench of the Tribunal in the case of Kudremukh Iron Ore Ltd. v. Collector of Customs, Bangalore - 2000 (121) E.L.T. 769 wherein the argument of the learned DR that a decision in the context of Sales Tax Act cannot be of any assistance in deciding the issue under the Customs Act, has been rejected holding that, whether dealt with under the Salex Tax Act or any other Act, the functions and utility of the equipments will not change, their use continues to be the same and so the nature of the equipment stated by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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