TMI Blog1990 (11) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing these goods from 1979 onwards and have been availing full exemption under Tariff Item 68. They have also been filing their declaration every year from 1984 onwards. 2. During preventive check on 25-4-1986 on the suspicion that they were manufacturing cement, a sample was drawn and sent to Chemical Examiner, Kandla for test. Certain documents were also seized and investigation was initiated. A show cause notice was issued on 5-1-1987 by the Collector demanding a duty of Rs. 6,57,509.25 on 3,486.45 mts. tons of goods manufactured and removed during the period from 8-1-1982 to 31-3-1986. 3. In his report dated 17-6-1986, the Chemical Examiner had opined as under : The sample is in the form of fine grey powder. It is Ordinary P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sample is 9.3% (Emphasis supplied). 6. A sample of the goods was also sent for test to the National Test House, Calcutta, who in their report dated 8-3-1989, reported as under : The sample has been tested as per specification No. IS-4032 - 1968 for method of Chemical Analysis of Hydraulic Cement representing Ordinary Portland Cement to specification No. I.S. 269 -1976 with the results noted below: Results of Chemical Analysis i) Description Grey fine powder % by mass ii) Lime (as CaO) 58.45 iii) Soluble silica (as Sio 2 ) 15.30 iv) Alumina (as A12O 3 ) 6.78 v) Iron Oxide (as Fe2O 3 ) 3.39 vi) Magnesia (as MgO) 1.25 vii) Loss on ignit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., dated 31-1-1970. (b) The sale bills issued by the appellant during 1982 to 1986 clearly show that the description of goods therein was Plaster of Lime, Pozzolanic lime, PCC Hydraulic Cement, Sagol etc. which are all exempt from payment of duty. These bills did not show that Ordinary Portland Cement was delivered to any Customer. (c) One grinding mill, one crusher and one pulverising machine are installed in the appellants factory for the manufacture of their product Plaster of Lime . These machines cannot manufacture Ordinary Portland Cement falling under Tariff Item 23 which has to fulfil the specifications of ISI-269 -1976 as indicated in MF (DR) Letter F. No. 1/5/70-CX. 4, dated 20-8-1970. (d) The goods in question did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the following judgments: (a) Collector of Central Excise, Kanpur v. Krishna Carbon Paper Co. - 1988 (37) E.L.T. 480 (SC) (b) A.V. Jains v. Union of India and Others - 1987 (29) E.L.T. 872 (BOM) 11. On the question of interpretation of Tariff Schedule and the requirement of construing not in the scientific or technical sense but as commodities are understood in commercial parlance, Shri Gujral placed reliance on M/s. Purbachal International and Another -1985 (21) E.L.T. 673 (Cal) 12. Summing up Shri Gujral stated that when the nature of goods is examined in the light of test results of the Chief Chemist and the National Test House, it would be clear that the goods in question were not Ordinary Portland Cement but Sagol or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nary Portland Cement is available in the Indian Standards Specifications IS-269-1967 and that the characteristics of Sagol especially the compressive strength at the end of 168 hours is far too below the minimum laid down for Ordinary Portland Cement in IS269-1967. In the circumstances, the exemption to Sagol is not applicable to Ordinary Portland Cement . 15. There is no doubt from the report of the Chief Chemist as well as that of the National Test House that the goods under dispute did not, on re-test, comply with the requirements of the ISI specifications in respect of important qualities like ignition loss and ratio of percentage of lime to silica. Hydraulic testing and compressive strength were not tested. It also appears from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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