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2016 (1) TMI 525 - AT - Central ExciseClassification of chemically coated micronized minerals and Red-oxide power - Revenue classified the chemically coated micronized minerals under Chapter sub-heading 3824.90 and Red-oxide power under Chapter Sub-heading 2821.10 of CETA, 1985 - Assessee classified the same under Chapter 25.05 of CETA - Held that:- Chapter note specifically covers products which are in the primary form which are crushed, ground, powdered, levigated, sifted, screened, or concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation) and the chapter note specifically excludes products which are roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading or sub-heading. It is evident from the above that the products which are covered under Chapter 25 are the only products which has not undergone any further processing beyond washing, grounded, powdered and concentrated. In the present case, the product micronized minerals which has undergone the process beyond the processes mentioned in Chapter note 2 of Chapter 25. Therefore, by virtue of chapter note, the micronized minerals are chemically coated products which has undergone the process beyond the process mentioned in Section note 2 or chapter 25 of CETA. Therefore, the goods are rightly excluded from Chapter 25. As regards classification of red oxide the appellant classified it under Chapter 25.05 and the department re-classified it under chapter 2821.10. The red oxide which is otherwise known as iron oxide and earth colour are specifically classifiable under Chapter 2821.10 as iron oxide and red oxide. Therefore, we do not find any merit in the appellant’s claim of classification under general category under Chapter 25. The appellant's only contention is that the products does not amount to manufacture is not justified as the process involved and also marketed clearly confirms that they are rightly classifiable under 2821.10. Demand of duty confirmed - Confiscation, fine and penalties are set aside. - Decided partly in favor of assessee.
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