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TMI Blog2023 (5) TMI 1201X X X X Extracts X X X X X X X X Extracts X X X X ..... has held in the operative part of the order that goods which are upgraded ilmenite has to be classified under CTH 26140010. The Commissioner (Appeals) held that the goods are unprocessed and has to be classified under 26140010. From the facts discussed and on the basis of the documents, it is concluded that such processes result in beneficiated Ilmenite. Thus, the goods which are upgraded/processed Ilmenite are classifiable under 2614 00 20. The impugned order is set aside - appeal allowed. - Customs Appeal No.41104 of 2014 - FINAL ORDER No.40347/2023 - Dated:- 26-5-2023 - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND MR. M. AJIT KUMAR, MEMBER (TECHNICAL) For the Appellant : Shri B. Sathish Sundar, Advocate For the Respondent : Shri S. Balakumar, Assistant Commissioner (A.R) ORDER Brief facts are that the appellant M/s. Beach Minerals Company who is the holder of Importer Exporter Code XXXXXXX199 filed the following shipping bills through their Custom House Agent, M/s. Barath Marines Company, Tuticorin for the export of Ilmenite upgraded (processed) , and classified the goods under Tariff Item 2614 00 20. The CHA vide letter dated 09.03.2013 stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est of the appellant for filing the shipping bills under the said classification was not acceded to by the Department and the appellant was directed to pay export duty at 10% on the FOB value under protest. 4. The learned counsel adverted to the flow chart to show the process undertaken on the ore (Beach Sand). The mining, refining and processing of beach sand minerals results in the processed Ilmenite which has a minimum of 51 to 52% TIO2 content. Beside the flow chart, the appellant had also submitted to the Department, a Certificate issued by the Geology and Mining Department (State of Tamil Nadu) dated 01.03.2013 in which it is stated that the appellant has license to export processed/upgraded Ilmenite and that they have been doing so over many years. 5. Ignoring these documents, the department has held that the process undertaken by the appellant on beach sand mineral does not bring into existence any new product/commodity / goods with distinct identity from the initial ore. The learned counsel adverted to the flow sheet of the mineral beneficiation plant which has been certified by the Geology Department as well as the Department of Atomic Energy and submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lmenite. The goods are therefore rightly classifiable under CTH 2614 00 10 and the appellant is liable to pay export duty at the rate of 10%. He prayed that the appeal may be dismissed. 10. Heard both sides. 11. The appellant has adopted the classification under CTH 2614 00 20 as beneficiated/processed Ilmenite whereas the Department has held that the goods exported will fall under CTH 2614 00 10 as unprocessed Ilmenite. For better appreciation, the Tariff heading with respect to Ilmenite under Chapter 26 is reproduced as under: 2614 00 - Titanium Ores and Concentrates 2614 00 10 --- Ilmenite unprocessed 2614 00 20 --- Ilmenite upgraded (beneficiated Ilmenite including Ilmenite ground) --- Rutile : 2614 00 31 --- Rare earth oxides including rutile sand 2614 00 39 --- Other 2614 00 90 --- Other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Our view is supported by the decision of the Tribunal in the case of VV Minerals Vs. Commissioner of Customs (supra). The Tribunal analyzed the issue in detail and observed as under: 11 . We have also seen the sample of both unprocessed and the final product i.e. upgraded Ilmenite and perused the certificate dated 1-3-2013 issued by the Department of Geology Mines, Government of Tamil Nadu which clearly confirms that appellants are licensed by the Government of Tamil Nadu to export processed/upgraded Ilmenite. Both adjudicating authority and the LAA relied the website literature of another company i.e. Kerala Minerals Ltd. and based their decision only on the issue of roasting and acid wash or chemical treatment. The department also contends that beneficiated ore should be high % of TiO2 which is Synthetic Rutile . We find that the classification of Rutile is separately classified under CH 2614 00 31. Therefore, the department s contention for classifying under Chapter 2614 00 10 is not based on valid reasons and relying another firm s website details cannot be taken as authentic evidence. It might be the process undertaken by the said company. 12. The Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on wet process because it is transported on wet basis (with moisture). Hence the output is more than the input of raw coal. Beneficiation process results in Clean Coal; Middlings; Tailings; and Rejects ... ... ... Conclusion : It is quite clear that beneficiation process (dense media gravity separation and froth floatation) are a physical separation process to separate higher ash coal and lower ash coal, so no chemical changes are there in the coal mineral, as there are no chemical reactions involved during this beneficiation process. Referring below a flow chart [not relevant] ..... From the quantity related table, it is also quite evident that due to addition of water during wet beneficiation, the summation of beneficiated coal product quantity is higher than fed ROM coal quantity. The Apex Court in the above decision clearly spelt out that beneficiation processes are only related to physical separation. The ratio of the Apex Court decision though it was held with respect to coal, the same squarely is applicable to the present case as the principle of beneficiation is same. Further the Hon ble High Court of Patna in the case of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or import or export the descriptions used in the chapter headings and sub-headings are to be literally applied and no other meaning or assumption can be made. The sub-heading 2614 00 20 only describes Ilmenite upgraded (beneficiated Ilmenite) without any specification. As evident from the findings of LAA the Revenue s trying to put the Synthetic Rutile under the above heading is incorrect and not acceptable. Therefore, by respectfully following the Apex Court and High Court decisions referred above, we are of the considered view that the product Ilmenite exported by the appellant is rightly classifiable under CH 2614 00 20 of CTH as Ilmenite upgraded (Beneficiated Ilmenite) and chargeable to appropriate export duty and not under 2614 00 10 of CTH. 13. Accordingly, the impugned order is set aside and the appeal is allowed with consequential benefit. 16. After appreciating the facts and evidence and following the decision, we hold that the goods which are upgraded/processed Ilmenite are classifiable under 2614 00 20. The impugned order is set aside. The appeal is allowed with consequential reliefs, if any, as per law. (Order pronounced in the open court on 26.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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