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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 ..... rate of 10% on FOB. The Ilmenite which is upgraded (beneficiated Ilmenite) processed comes under Sl.No.24 D at the rate of 5% on FOB with effect from 01.03.2013. The appellant had filed shipping bills describing the goods as 'processed Ilmenite' and classifying it under Customs Tariff heading 2614 00 20. On 14.03.2013 a letter was issued to the appellant asking to submit right evidence to substantiate the tariff change. The appellant vide letter dated 18.03.2013 furnished the details as to the operation and process conducted on the Ilmenite before export. So as to claim the goods as processed Illmenite. They also attached the analysis report and the production flow chart. Due to the dispute the appellant requested to permit them to file shipping bills classifying the goods under CTH 2614 00 20 and allow them to pay the export duty at the rate of 10% under protest. 2. After due process of law, the original authority ordered classification of the Ilmenite upgraded (processed) under Customs Tariff Act 2614 00 10. Aggrieved by such order, the appellant filed appeal before the Commissioner (Appeals) who held that the Ilmenite sand exported is unprocessed and has to be classified under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l processes and does not involve any special process such as roasting or chemical treatment and that therefore the processes do not bring any upgradation or augmentation of mineral (TIO2) content. Countering this allegation, the learned counsel explained that though the process of beneficiation in the present goods does not involve any chemical treatment and roasting the processes undertaken as per the flow chart would show that the raw sand has undertaken beneficiation and the Ilmenite obtained is upgraded Ilmenite. The classification would be therefore under 2614 00 20. 8. To support his argument, the learned counsel relied upon the decisions of the Tribunal in the case of V.V Minerals Vs. Commissioner of Customs, Tuticorin 2016 (332) ELT 888 (Tri. Chennai).It is submitted by the learned counsel that the appeal filed by the Department against the above decision is pending before the Hon'ble Apex Court as reported in Commissioner of Customs Vs. VV Minerals 2016 (342) ELT A54 (S.C). However, the jurisdictional High Court in the case of Industrial Mineral Company (IMC) Vs. Commissioner of Customs, Tuticorin2018 (18) GSTL 396 (Mad.), held that the decision of the Tribunal has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evelopment Rules, 1988. 3. Definitions. - In these rules, unless the context otherwise requires - 3(d) "beneficiation" means process of minerals or ores for the purpose of (i) Regulating the size of a desired produce; (ii) Removing unwanted constituents; and (iii) improving quality, purity or assay grade of desired product." 13. As per the above definition beneficiation is done for three purposes. Any processes done for the above three purposes carried out on the mined sand would be known as "beneficiation". From the flow chart which has been noticed above it can be seen that the various processes undertaken on the raw sand by the appellants achieves the purpose of regulating the size, removing unwanted impurities and also improving quality or SI grade of Ilmenite. We therefore find it difficult to agree with the view of the Department that to obtain beneficiated Ilmenite processes like roasting and chemical treatment is mandatory. Without furnishing any evidence to establish the said contention, we have to say that the processes undertaken by the appellant would result in beneficiated Ilmenite. 14. Though the original authority had discussed and held in Para 18 that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of ROM raw coal is done to reduce the ash content to bring up to Steel Grade coal. ROM coal of various seams at coal mine is fed into the Coal washery (Beneficiation plant) for beneficiation so that the final clean coal product has ash of below 15% (Steel Grade coal). For coal beneficiation, gravity separation methods for coarser (size 13 mm to 0.5 mm) material and froth floatation method for finer material (size < 0.5mm) are done. So, before beneficiation, the raw coal is crushed into size below 13 mm at Coal Handling Plant (Crushing Plant). The coarse material i.e. size from 13 mm to 0.5 mm is treated in dense media cyclone whereas, less than 0.5 mm is treated by froth floatation method. As beneficiation is a wet process hence, it increases the moisture percentage of beneficiated coal by around 8% to 15%. After beneficiation, apart from the clean coal (required in Blast furnace for Steel making), we also get Coal by-products named as, middling (ash 40-45%), Tailings (ash 40-45%) and Rejects (ash 60-65%). The product quantity after beneficiation process gets increased due to wet process by adding moisture into the output, shown by an example below - Production (Extr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh beneficiation. Federation of Indian Mineral Industries have also pointed out that several processes (in addition to crushing and screening) such as milling, hydraulic separation, magnetic separation, floatation & Concentrate thickening have to be undertaken for ores to be converted into concentrate. 3. Hence it is clarified that the levy of excise duty is attracted only in cases where the product meets the definition of concentrate as per HSN Notes, that is, 'ores which have had part or all of the foreign matter removed by special treatments either because such foreign matter may hamper subsequent metallurgical operations or with a view to economical transport'." The above clarification covers the appellant's export product which is covered under2614. The above circular and the ratio of the Hon'ble Apex Court and High Court decisions (supra) are squarely applicable to the present case. The department relying on the Tribunal decision in the case of Kerala Minerals & Metals Ltd. (supra) is on the manufacture and excisability of the product and not on beneficiation or classification. The same is not applicable to the present case as the issue here is on charging export duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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