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TMI Blog2019 (8) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... n provided under Notification No. 4/2006-C.E. should not be available. Appeal allowed - decided in favor of Revenue. - Customs Appeal No. 86231 of 2013 - A/86334/2019 - Dated:- 23-7-2019 - Mr. S.K. Mohanty, Member (Judicial) And Mr. Sanjiv Srivastava, Member (Technical) Shri Manoj Kumar, Authorised Representative for the Appellant None for the Respondent ORDER PER: S.K. MOHANTY Heard the learned AR for Revenue. None appeared for the respondent, despite notice. 2. Whether the process of roasting of ores into concentrate should be considered as manufacture activity under Chapter Note 4 of Chapter 26 of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal form as mined. They had admittedly undergone the process of roasting and after the roasting, they are known as concentrates . Even the assessee has described these goods as Roasted Molybdenum Ore Concentrate. (d) Chapter Note 4 treats the aforesaid process of roasting Ores into Concentrate as manufacture . 27. On the aforesaid facts, case of the assessee was that since ores include concentrates, assessee had claimed exemption from payment of CVD under Notification No. 4/2006-C.E. In support of this claim that even after roasting, concentrates remain ores only on the plea that ores is genus and concentrates is specie thereof, the assessee refer to literature on chemical technology an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsertion of Note 4. Note 4 now categorically mentions that the process of converting ores into concentrates would amount to manufacture . Therefore, it cannot now be argued that roasting of ores and converting the same into concentrates would not be manufacture. For the same reason, the judgment in MMTC becomes inapplicable and reliance upon Kirk-Othmer s Encyclopedia becomes irrelevant. With the addition of Note 4, a legal friction is created treating the process of converting ores into concentrates as manufacture. Once this is treated as manufacture, all the consequences thereof, as intended for creating such a legal friction, would automatically follow. Following shall be the inevitable implications : (a) It is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concentrate is to be treated as a different product than ores, in law for the purposes of products of Chapter 26. 30. This brings us to the effect of Chapter Note 2 which is retained even after insertion of Chapter Note 4. No doubt, as per Chapter Note 2, ores means minerals of mineralogical species actually used in the metallurgical industry for the extraction of mercury, of the metals of Heading 2844 or of the metals of Section XIV or XV, even if they are intended for non-metallurgical purposes. As per this note, metals of Section XV would be included in the term ores . However, after the insertion of Chapter Note 4, these two Notes, namely, Note 2 and Note 4 have to be read harmoniously. If we accept th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , concentrates automatically falls outside the purview of said notification. It is rightly argued by the learned senior counsel for the Revenue that exemption notifications are to be construed strictly and even if there is some doubt, benefit thereof shall not enure to the assessee but would be given to the Revenue. This principle of strict construction of exemption notification is now deeply ingrained in various judgments of this Court taking this view consistently. 3. In view of the above settled position of law, we do not find any merits in the impugned order passed by the learned Commissioner (Appeals). Accordingly, the appeal filed by Revenue is allowed. (Dictated and pronounced in the open court) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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