Page 195 - ELT_3rd_1st May 2020_Vol 372_Part

2020 ] MULCHAND M. ZAVERI v. COMMISSIONER OF CUSTOMS, AHMEDABAD 417

2020 (372) E.L.T. 417 (Tri. - Ahmd.)
IN THE CESTAT, WEST ZONAL BENCH, AHMEDABAD
[COURT NO. III]
Justice Dilip Gupta, President and Shri Raju, Member (T)
MULCHAND M. ZAVERI
Versus
COMMISSIONER OF CUSTOMS, AHMEDABAD
Final Order Nos. A/12330-12331/2019-WZB/AHD, dated 5-12-2019 in Appeal
Nos. C/10749-10750/2017
Ore - Meaning of - “Ore” applies only to “metalliferous minerals”
which are “extracted from mines” or to “native metals in their gangue” as per
HSN - Only Naturally occurring substances termed as “minerals” and there-
fore “Ores” as is evident from definition of “Ores” appearing in Note 2 of
Chapter 26 of Central Excise Tariff and definition of “minerals” in various dic-
tionaries - Furthermore, HSN clarifies that the term “ore” applies only to
goods that are not subjected to processes which are “not normal to Metallurgi-
cal Industry” - Thus goods produced by subjecting pure gold, sand and other
materials to various processes to appear like ore cannot be called ore, these
processes, of mixing gold with sand and other substances to create an ore like
product, being not normal to Metallurgical Industry. [paras 4.1, 4.2]
Man-made gold nuggets mixed with other metals - Goods imported by
appellant produced in a workshop by mixing sand and gold and various mate-
rials, cannot be called concentrate, goods not being obtained from “ores” and
as per HSN explanatory notes the term “concentrate” applicable only to ‘ores
which have had part or all of the foreign matter removed……’. [para 4.3]
Exemption from CVD - Goods imported not gold ore concentrate but
an artificial mixture of gold with other metals in soil, sand, etc. as supported
by WhatsApp messages and corroborated by statement of appellant’s partner
and other documents and recovery of a cost sheet during search of the appel-
lant’s premises - Only naturally occurring materials can qualify as ore and arti-
ficially produced material cannot qualify as ores even if they correspond to the
physical/chemical parameters of “ores” - Benefit of exemption from CVD not
available under Notification No. 12/2012-C.E. (Serial No. 56). [paras 5.5, 5.6, 5.7,
6, 6.1, 6.8]
Confiscation, redemption fine and penalty - Goods imported by appel-
lant produced in a workshop by mixing sand and gold and various materials
are man-made gold nuggets mixed with other metals and not gold ore, liable to
confiscation under Sections 111(d) and 111(m) of Customs Act, 1962 - Duty
evaded in this consignment being approximately ` 18 lakhs, redemption fine
reduced to ` 15 lakhs - Penalty of ` 10 lakhs, imposed under Section 112(a) of
Customs Act, 1962 in respect of the confiscated consignment upheld. [para 7]
Demand - Limitation - Extended period - WhatsApp messages clearly
show that the previous consignments produced in the workshop and corrobo-
rated by the detailed analysis in the impugned order and also by the recovery
EXCISE LAW TIMES  1st May 2020  195