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2.2 The activities/processes undertaken by the appellant comprises of dredging of beach sand. Dredged sand is taken to the beach washing plant (i.e. wet concentrator) where washing through a series of spiral separators, exploit the differences in mineral specific gravity. In the process, heavies (i.e. sand containing the specified minerals which is heavier than quartz) are separated from the quartz and the quartz (also known as gangue) is discarded/removed. Also, in the process, two types of concentrates i.e. Concentrate A and B containing 92% of heavy mineral mainly, Ileminite, Rutile, Zircon, Monazite and a part of Silliminite with Garnet and Concentrate B containing about 50% heavy minerals, mostly, Silliminite and Garnet are obtained respectively. Concentrates are passed through the High Heavy Upgradation Plant whereby conducting minerals like Ileminite, Rutile are separated from the non-conducting minerals i.e. Garnet, Silliminite, Monazite and Zircon. Thereafter, the individual minerals are subjected to magnetic separation to separate each other.

(viii) Report dated 10.7.2014 from Atomic Minerals Directorate for Exploration and Research in respect of raw sand reported that it contains quartz, traces of albite, almandite, hornblende, ilmenite, monazite, rutile, sillimanite and zircon. As regards the various minerals separated from the raw sand, it reported then to be ilmenite(with traces of rutile and hematite), rutile, zircon, sillimanite and minute traces of zircon and garnet (almandite).

3.6 The ld. Advocate has submitted that various test reports and the technical opinions indicate that minerals separated from the beach sand are ores and not concentrates. Referring to the meaning of ore prescribed in Note 2 to Chapter 26 of CETA, 1985 and the meaning of concentrate in the HSN Explanatory Notes, it is his contention that the process that carried out does not result into removing part or all the foreign materials present in the ore. The processes carried out by them only results improving the content of the particular ore in a given quantity of sand. The actual gain of the ore will continue to posses some quality as prior to processing by the appellant which establishes the fact that no concentrates of the ores takes place.

4.3 He further submits that the re-examination report dated 17.2.2003 of Regional Research Laboratory (CSIR), confirms that while the raw beach sand contains the discreet particles of the impugned minerals along with quartz(quartz 74.85%, Silliminite 3.46%, Elleminite 9.18%, Rutile 1.15% and Zircon 0.88%, Garent 6.65% of the sand beach), the quartz which is a major constituent in the raw sand is removed by the process undertaken by the appellant which makes the separated minerals fit for subsequent metallurgical operations and to facilitate their transportation. As such the process undertaken by the Appellant results into emergence of the concentrates from the ore (raw sand beach). In view of this, the said process amounts to manufacture as per chapter note 4 to chapter 26.

4.4 The term special treatments to which the ores are subjected to get the concentrates are not defined. However, it is observed that various processes to which the goods falling under chapter 2601 to 2617 are subjected to are mentioned in the HSN explanatory notes such as physical, physico-chemical or chemical operations namely crushing, grinding, magnetic separation, gravi-metric separation, flotation, screening grading, agglomeration of powder (e.g. by sintering or pelleting) into grains, balls or briquettes (whether or not with the addition of small quantities of binders), drying, calcinations, roasting to oxidize or magnetise the ore etc. 4.5 He submits that the appellant dredged the natural sand form the sea bed/beach and obtain sand slurry. It is the ores conglomerate of various metallurgical product of ore like Ileminite, Sillimenite, Rutile, Zircon and Garnet along with other rock particles like quartz, feldspar, pyroxene, shells fragments (Organic matters) and sline. He submits that the ld.adjudicating authority has observed that the ordinary beach sands contain all these ores/minerals along with other particles and it confirm the definition of ores as per the tariff read with HSN clarificatory notes. The minerals supported their sand beach ore concentrates.