2014 (7) TMI 1023 - AT - Central Excise

Classification of Polymer Modified Bitumen (PMB) and Crumbled Rubber Modified Bitumen (CRMB) - manufacturing from Petroleum Bitumen - classification under TSH No. 27150090 or under 27132000 of the CETA - Held that - PMB or CRMB cannot be treated as bituminous mixtures falling under CSH 27150090 and was continued to be classified under CSH 27132000 pertaining to tariff for petroleum bitumen. - Decision in the case of Osnar Chemical Pvt. Ltd (2012 (1) TMI 27 - Supreme Court of India) followed - Decided in favor of assessee.

Summary

Issues involved: Classification of Polymer Modified Bitumen (PMB) and Crumbled Rubber Modified Bitumen (CRMB) under the Central Excise Tariff Act, 1985.

Analysis:
The appellants were engaged in the manufacture of PMB and CRMB from Petroleum Bitumen, with the adjudicating authority confirming the classification under TSH No. 27150090 of the Central Excise Tariff Act, 1985. The Ld. Advocate argued that based on a Tribunal decision and the Honble Supreme Court case of CCE, Bangalore II Vs. M/s. Osnar Chemical Pvt. Ltd., both PMB and CRMB should be classified under 27132000 of the CETA Act. The Ld. AR for the Revenue contended that the composition of the products is different, making the Supreme Court decision inapplicable. However, the Tribunal found the Supreme Court's decision clear that PMB or CRMB should not be treated as bituminous mixtures under CSH 27150090 but rather classified under CSH 27132000 for petroleum bitumen. The Tribunal also noted its own previous decision in the appellants' case, aligning with the Supreme Court's classification. Therefore, the impugned orders were set aside, and the appeals were allowed with consequential relief.

This judgment clarifies the classification of PMB and CRMB under the Central Excise Tariff Act, 1985, emphasizing the applicability of the Honble Supreme Court decision and the Tribunal's previous rulings. The Tribunal's decision provides a clear direction on the correct classification of these products, ensuring consistency in interpretation and application of the relevant tariff provisions.