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TMI Blog1990 (11) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... n a form of fluffy powder known as 'Plaster of Paris' (which was in turn captively used by the appellants for manufacture of ceramics wares) is excisable and chargeable to duty. The same was classified on the basis of statutory Note 2 to Chapter 25 under Chapter Heading 2505 of CET. The Additional Collector also confirmed the demand for Rs.1,76,954.88 P. for the period 1-3-1986 to 28-2-1987 under Section 11A of Central Excises and Salt Act, 1944. 2. The Additional Collector of Central Excise has confirmed the demand raised in the show cause notice dated 8-6-1987 signed by Collector in respect of the impugned product and has classified it under Tariff Entry No. 2505.00 and also held that the Notification No. 271/86 is not applicable as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained is not a manufacturing process as process of roasting/calcination is only applied and have relied on the ratio of the Supreme Court ruling rendered in the case of DCM Ltd. (1977 E.L.T. 199). They have further contended that they are entitled to the benefit of Notification No. 217/86 as the inputs falling under the Column No. 2 of the Table given under the said notification and used for manufacture of final products given under Col. No. 3 of the Table of the Notification, are exempted fully from the payment of the Central Excise duty. They have contended that Chapter 25 under which Plaster of Paris is sought to be classified is covered under the description of inputs and the final product for which the production in question is used fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial known as Glazing material duly prepared in the factory. The Plaster of paris being manufactured basically from some gypsum. As regards the process of washing, drying, roasting and calcination is concerned, the first three processes were carried out to obtain the product and the last one is nothing but roasting. Finally, he has nothing to add." 5. We have heard Shri D.A. Dave, Advocate for the appellants and Shri S. Chakraborti, learned Departmental Representative, and carefully perused the records. The Department has sought to classify the intermediate product Plaster of Paris which has arisen during the course of manufacture of ceramics. The Plaster of Paris is made from gypsum, a raw material which is received in the form of chips. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lime; plasters with a basis of calcium sulphate, whether or not coloured, but not including plasters specially prepared for use in dentistry". 12% Thus by reading the Note 2, it is clear that it does not cover products that have been roasted, calcined or obtained by mixing. Chapter 25.05 includes plasters with a basis of calcium sulphate but such plasters which are obtained by roasting, calcination or obtained by mixing are excluded by the Note 2. In this case, admittedly, the Plaster of Paris is obtained by a process of roasting and by calcination. Hence the impugned product gets excluded from the Chapter 25.05 by virtue of this Note 2. The reasoning adopted by the Additional Collector in the impugned order is not sustainable. The Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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