Ore or Concentrate? - CESTAT grants stay
VIDE Finance Act, 2011, Chapter Note 4 was inserted in the Chapter 26 of the Central Excise Tariff to declare "In relation to products of this Chapter, the process of converting ores into concentrates shall amount to "manufacture". Notification No 4/2006 CE 01.03.2006 exempted ores falling under Chapter 26 from excise duty. (This is continued in 12/2012 CE also). Many importers were claiming exemption from payment of Additional duty of customs by availing this Notification. However, after inserting the chapter note 4 in Chapter 26, demand notices were issued by denying the benefit of exemption on the ground that the imported Ores are to be treated as concentrates. The dispute has now reached the CESTAT and in a recent case, the South Zonal Bench waived pre-deposit completely and granted absolute stay against the demand.
We had covered this issue in detail in - 26.03.2012