Excise duty on iron ore

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This query is : Resolved

KMPL (Querist)

23 August 2011 My query is wheather there is excise duty on sale of beneficiated Iron ore
We bring Iron ore in lumps form and after processing sell it as iron ore lumps and fines I would like to know the status of excise duty on such an ore

PAWAN KUMAR

PAWAN KUMAR (Expert)

24 August 2011 Excise duty would be charged as per the tariff rate of excise duty.

PAWAN KUMAR

PAWAN KUMAR (Expert)

24 August 2011 Excise duty would be charged as per the tariff rate of excise duty.

KMPL

KMPL (Querist)

25 August 2011 Iunderstand that it will be charged as per the tariff rate but as per 4/2006 iron ore is exmpted from excise duty so please tell me wheather there is any excise duty on iron ore at present

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)

25 August 2011 In my opinion that notification is still alive for NIL duty in the instant matter.

PAWAN KUMAR

PAWAN KUMAR (Expert)

25 August 2011 You are right the notification is still alive. This notification was issued on the basis of manufacturing aspects whether the process of ore to concentrate by grinding and washing with the help of machineries is amount to manufacture or not. Before the issuance of this notification ore was charged to excise duty as per tariff.

Now as per chapter note No.4 to chapter 26 of tariff, which has been inserted from the budget 2011-12, the process of converting ore into concentrate is amount to manufacture, therefore, liable to duty as per tariff with effect from 01.08.2011, the date of enactment of finance bill, 2011.

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KMPL

KMPL (Querist)

25 August 2011 Dear Mr.Pawan kumar
Please note We are not manufacturing iron ore concentrate but we are only upgrading the ore contents from lower to higher hence it may not coming under concentrate as per your above insertion .
shashi Kant Gupta

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