1987 (1) TMI 214 - AT - Central Excise

Summary

Issues:
- Classification of chlorinated wax under Central Excise Tariff
- Liability to duty on chlorinated wax under Item 11-A of the Central Excise Tariff
- Interpretation of the emergence of a new commercial product post-chlorination
- Applicability of duty on the product post-chlorination

Analysis:
1. Classification of Chlorinated Wax: The appeal concerns the classification of chlorinated wax under the Central Excise Tariff. The Collector of Central Excise, Patna, appealed against the Appellate Collector's decision that chlorinated wax is not excisable to duty under Item 11-A of the Central Excise Tariff.

2. Liability to Duty on Chlorinated Wax: The Collector of Central Excise, Patna, argued that chlorinated wax should be dutiable under Item 11-A of the Central Excise Tariff based on previous tribunal decisions. The Departmental Representative cited cases to support the contention that a new commercial product emerges post-chlorination, warranting duty under the same tariff item again.

3. Interpretation of Emergence of a New Product: The respondents, represented by Shri Harbans Singh, contended that chlorinated wax transforms into a plasticizer post-chlorination, falling under Item 68 of the Central Excise Tariff. They provided references from the Handbook of Small Scale Plastics Industries and a trade notice to support their classification argument.

4. Applicability of Duty Post-Chlorination: The Tribunal analyzed the arguments presented by both parties. While the Departmental Representative asserted that chlorinated wax remains classifiable under Item 11-A even after chlorination, the respondents demonstrated that the product becomes a plasticizer post-chlorination. The Tribunal noted the confusion in the appeal's terms and concluded that the product, upon chlorination, no longer falls under Item 11-A but is correctly classified under Item 68.

5. Judgment: After careful consideration of the facts and submissions, the Tribunal dismissed the appeal. The Tribunal found that the product, post-chlorination, transforms into a plasticizer falling under Item 68 of the Central Excise Tariff, and therefore, no further duty is payable under Item 11-A. The decision was based on the understanding that the tariff item does not provide for the inclusion of plasticizers under Item 11-A, as clarified by the trade notice referenced by the respondents.