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TMI Blog2013 (1) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 4/2006-C.E. as the goods which are imported are nothing but Zirconium Ore. In favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is in ore form having Zircon and segregated by means of spiraling. It is his submission that the reliance placed by the lower authorities on the test result of the CRCL is incorrect inasmuch as the CRCL had sent the samples of the appellant to Indian Rare Earths Ltd. Research Centre, Kollam and the analysis report of the Indian Rare Earths Ltd. Research Centre clearly indicated that the Zircon sand samples which were sent, is having Zircon Oxide content as 64-66%. It is also his submission that the said letter dated 16-7-2011 of Indian Rare Earths Ltd. Research Centre specifically mentions that for a Concentrate, it has to undergo the chemical process and ZrO2 content should be 95% or more. Ld. Counsel would take us through the chemical and mineralogical analysis of the samples of the goods imported by them and conducted at Indian Rare Earths Ltd. Research Centre and submits that the conclusion reached by the Indian Rare Earths Ltd. Research Centre is that the sample is granular sand of Zircon Ore. It is his submission that how the CRCL has come to the conclusion that it is a Concentrate, is unknown to them as it is undisputed that the CRCL did not do any analysis or test in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the process of spiraling is nothing but to separate basic materials and collect sand which has concentrated Zircon elements and is exported. It is his submission that some preparatory process as per HSN explanatory note, have been carried out to make the impugned goods as Zircon Concentrate, therefore, it is established that the imported goods are Zircon Concentrate, regardless of it being declared by whatever name by the appellant in the import document. It is his submission that the Revenue had intention to exempt only the Zircon Ore in its original form from payment of CVD, as if the said Zircon Ore is mined in India, that would amount to manufacturing activity, while the exemption notification has specifically excluded concentrate from its purview. It is his submission that having kept out the Concentrate from the purview of notification, it has been understood that said concentrate can come into existence only when the Zircon Ore is further acted upon or processed to yield Zircon Concentrate. It is also his submission that the samples which were sent for analysis were nothing but Zircon Concentrate and hence appellant is not eligible for the benefit of Notification No. 4/2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Minerals Weight % RUTILE 0.2 MONAZITE 0.1 ZIRCON 98.6 SILLIMANITE 0.1 OTHER HEAVY MINERALS 0.2 QUARTZ 0.8 TOTAL 100.0 Remarks : The sample is granular sand of Zircon ore and the composition of the sample is as per the mineralogical analysis given above. 9. It can be seen from the above reproduced chemical test report of Indian Rare Earths Ltd. Research Centre, Kollam, that they are specialist and experts in analysis of such kind of rare earth, hence the said samples were sent to them for analysis. It is also clear from the above reproduction of the test result of one of the said samples that have found out ZrO2 which the primary content as being 62.9%. 10. We find that the Director of the Revenue Laboratories was in touch with the Indian Rare Earths Ltd., Research Centre, Kollam as regards analysis of the said samples. In response to the correspondence from the Director (Revenue Laboratory) CRCL Delhi, Indian Rare Earths Ltd. Research Centre, Kollam vide their letter No. RC : LAB : SO : 2502 : 240, dated 16-7-2011 has replied as under : Ref : RC : LAB : SO : 2502 : 2240 date : 16-7-2011 To, Dr. T.K. Roy, Director (Revenue Laboratories), Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is called as Zircon sand will also have a strong force in coming to a conclusion that the goods which were imported by the appellant were Zircon Ore and not Zircon Concentrate. 15. We find that in an identical situation, 2 more importers i.e. M/s. Ruby Ceramics Pvt. Ltd. Pune and M/s. Tirupati Microtech Pvt. Ltd. had imported Zircon sand (Zircon Ore) during the relevant period. The samples of the goods which were imported were sent to Indian Bureau of Mines, Modern Mineral Processing Laboratory and Pilot Plant at Nagpur for analysis by the Assistant Commissioner of Customs, ICD, Pimpri and Assistant Commissioner of Customs, Gr. I JNCH, Nhava Sheva. The Ministry of Mines, Indian Bureau of Mines, after analyzing the samples of Zircon sand (Zircon Ore) has informed both the Assistant Commissioners in separate letters as under : Letter dated 16-11-2011 : No. 402(43)/OD/Chem/2011-12/CB Date : 16-11-2011 To Mr. Akhtar Rashid, Asstt. Commissioner of Customs, Gr.I, JNCH (Jawaharlal Nehru Customs House)-Nhava Sheva, Tal. Uran, Dist : Raigad Sub : Results of chemical analysis of Zirconium sand/Zirconium ore of M/s. Tirupati Microtech Pvt. Ltd. Ref : No. S/26-Misc.-475/09-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authorities are not able to rebut the expert opinion of Indian Rare Earths Ltd. Research Centre, Kollam as well as Indian Bureau of Mines except submitting orally that Indian Rare Earths Ltd. Research Centre, Kollam is an interested party as they are also using and manufacturing Zirconium Concentrate. In our view, if that be so, the Revenue is not able to explain the fact that CRCL laboratory which analyses the samples sent by the Customs department has, in fact, chosen to send the samples to Indian Rare Earths Ltd. Research Centre, Kollam for analysis of said imported goods Zirconium sand. 17. We find that in an identical situation, in the case of Indian Rare Earths Ltd. - 2002 (139) E.L.T. 352 (Tri.-Kolkata), the Tribunal has held as under, which also fortifies our stand. "2. The process carried out by the appellants are that the sand is dredged from the sea beach and the sand slurry is subjected to spiraling and as a result the heavier minerals are separated. By this process about 80% of the lighter sand is eliminated, the remaining 20% are brought to the Mineral Separation Plant by pumping the slurry through pipe. There the individual minerals are separated by pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on sea beach along with ordinary sand. Most of the sand on the sea beach is ordinary sand only. Mineral sands constitute less than 10% of the total quantity of sand on the sea beach dredged out by the appellants. Sand as it occurs on the sea shore cannot be called mineral ores. Such sand is also not bought and sold as mineral ores. The processes carried out by the appellants lead to separation of valuable rare mineral sands from the ordinary sand. The processes are physical and mechanical in nature. No special processes including rosting or chemical treatment is carried out. The processes do not bring about any upgradation or augmentation of purity in the mineral sands separated from ordinary sand. It is also on record that the resultant mineral sands are bought and sold as ores only and not as concentrates of ores. It is clear from note 2 of Chapter 26 of the Central Excise Tariff that only ores which have been submitted to processes, not normal of the metallurgical industries are excluded from ores. Thus, ores which have been subjected to special treatment go out of the scope of ores. No such special treatment is carried out in the present case. 9. ……&hell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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