2004 (8) TMI 466 - AT - Central Excise

Summary

Issues: Classification of cleaning powder under Central Excise Tariff (CET)

Analysis:
1. The appeal concerns the classification of cleaning powder manufactured by the appellants under the Central Excise Tariff. The goods were seized by Preventive officers, and a show cause notice was issued proposing classification under Chapter sub-heading 3402.90 of the CET. The Chemical Examiner's report supported this classification, leading to duty demand and penalty confirmed by the adjudicating authority and the Commissioner (Appeals).

2. The appellants argued that they manufacture only Scouring powder falling under Chapter Heading 34.05 (sub-heading 3405.40), exempt from duty under Notification No. 222/77-C.E. The Chemical Examiner's report was cited in support, but the interpretation was contested. The impugned order was challenged for this reason, while the SDR defended its correctness.

3. The Tribunal analyzed the composition of the cleaning powder and the Chemical Examiner's findings. The powder was found to contain specific ingredients characteristic of cleaning powder, despite some characteristics of scouring powder noted by the Examiner. The Director of the appellants' company admitted to manufacturing cleaning powder, supported by marketing and invoicing practices. Consequently, the lower authorities' classification of the powder as 'cleaning powder' under sub-heading 3402.90 was deemed appropriate. The duty demand was upheld, and the appeal was dismissed for lack of illegality in the impugned order.