TMI Blog1998 (4) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... 3823.00, as held by the Department. 2. The process of manufacture of the said Lead Oxide (Grey) is by the ball mill process in which the metallic lead balls of high purity are tumbled in the mill to form partially oxidised lead particles. By regulating the amount of air forced in the mill, the mill charge temperature and amount of Bill Mill Charge, the ratio of Lead Oxide to metallic lead is controlled. Thus by controlled oxidation of pure lead, a specially prepared mixture is obtained. Such mixture actually consists of (1) Lead Monoxide (PbO) and (2) Free Lead (Pb). 3. The appellants classification list effective from 1-3-1988 was approved by the Department on 15-9-1988 by classifying the Grey Lead Oxide as falling under Tariff Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Oxides are covered by the said Entry. Had it been only fully converted Lead Oxide, the Entry would have spelt as `Lead Oxide and not as `Lead Oxides . He further submits that the only ground on which the authorities below have ousted the appellants from the purview of the said Entry is that the Lead is not fully oxidised in their case and the oxidation is not 100%. He also places reliance on Chapter Note 2 of Chapter 38 which lists the items to be classified under Chapter Heading 38.23. He submits that the Sub Oxides of Lead are not included in Chapter Heading 38.23 by virtue of the said Chapter Note. He submits that the said Chapter Note (2) does not appear in H.S.N. and as such, the Entry 38.23 is placed on different footing than the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Grey Oxide obtained by controlled oxidation of pure Lead in a Ball Mill process and used in the manufacture of storage battery plates. Relying upon the Supreme Court Judgment in the case of Collector of Central Excise, Shillong v. Woodcrafts reported in 1995 (77) E.L.T. 23 (S.C.), he submits that the HSN Explanatory Notes are binding and as such reliance should be placed upon the same. He also refers to the Trade Notice No. 191 (Ch-38)-3/CE/CAL-II 90 dated 16-10-1990 issued by the Calcutta Commissionerate which is based upon the Board s Clarification clarifying that the Lead Sub Oxides (Grey) are properly falling under Chapter 38. While issuing the above instruction, the Board had relied upon the opinion given by the Chief Chemist, C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that HSN Explanatory Notes are binding in character and can be relied upon for the purposes of interpretation of Tariff under Central Excise Tariff Act. 1985. Shri N. Mookherjee s contention that Chapter Note (2) to Chapter 39 is not present in HSN is factually incorrect inasmuch as the same Chapter Note (2) its also available under Chapter 38 of Explanatory Note. Though there cannot be any legal dispute as regards Rules 3(a) (b) of the Rules of Interpretation, we find that the same are not applicable to the facts of the instant case inasmuch as the appellants product being a specially prepared mixture, cannot be said to be covered by a specific Entry of 2824.00. 11. In view of our discussions above, we hold that Lead Sub Oxide (Grey) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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