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TMI Blog1994 (2) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... r Heading 3402.90 stated the ground as follows :- ".....inasmuch as the said product is not used as colouring matter and used for auxiliary washing of the fabrics which results in brightening the fabrics ......." 1.2 A sample of the product RLFW was also drawn. Report of the Chemical Examiner, Custom House, Madras is as follows :- "The sample is a blue coloured liquid. It is aqua dispersion of Ultramarine Blue. It does not possess any surface active property. It is not a surface active agent." 1.3 On or about 28-3-1987, Assistant Collector filed an application under Section 35E of the CE & S Act, 1944 to the Collector (Appeals) for review of the said order dated 29-10-1986 and classifying the said product under sub-heading 3402.90. 1.4 The lower appellate authority allowed the application of the Revenue under Section 35E. After setting out the respective headings, Chapter Notes, the lower appellate authority has held as follows :- ".....Therefore the product RLFW is correctly classifiable as washing preparation including auxiliary washing preparations. As the liquid fabric whitener does not impart any colour to the fabric which is washed its classification under T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tity of Ultramarine Blue is added to water in a mixing vessel and then stirred with a stirrer. To this, Bentonite soaked in Spirit is added and stirred well till Bentonite is dispersed well. Ranipal and Methyl Violet are added to this and again stirred. Finally, this is followed by addition of perfume and formaldehyde. This mixture is stirred and strained so that it is free from any agglomerate. Purpose of Ingredients : Ultramarine blue - to give whitening effect to the fabric Bentonite - to help to keep blue particles in suspension. Ranipal and Methyl Violet - to enhance the effect of ultramarine blue in whitening and blueing of the fabric. Formaldehyde - as a preservative Perfume - perfuming Water - as a medium." 2.1 Learned advocate, Shri Jatin Ghosh for the appellants has urged that RLFW is a mixture, and not a chemical compound, based on inorganic substance, ultramarine blue, though some of the ingredients are organic substances. Ultramarine Blue is not only the major ingredient amongst solid substances but also constitutes the active ingredient from the purpose of ingredients set out above. He submits that correct classification of the product RLFW is Head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 page 51 Ultramarine (blue) find uses in many industries - frequently as a toner or `whitener' for white flats and enamels; special kinds of printing inks.... Their whitening properties are also used in laundry bleaches and paper making. (iii) ISI Specification for Ultramarine Blue for use in Textile Industry (IS: 11217-1984) :- In para 0.2, it is stated that ultramarine blue is used extensively in textile industry as a tinting material. It is also used in laundry industry. Use of ultramarine blue enhances the appearance of white, bleached textiles. 2.4 Inviting attention to HSN Explanatory Notes under Heading 34.02 - S. No. (B), ld. advocate has urged that washing preparations (including auxiliary washing preparations) and cleaning preparations referred to in that heading of the CETA, 1985 have a basis of soap or other organic surface active agents. This is clear from the relevant extracts of HSN Explanatory Notes at page 485 as reproduced below :- "(B) Washing preparations (including auxiliary washing preparations) and cleaning preparations, having a basis of soap or other organic surface-active agents. This category covers washing preparations, auxiliary washing pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refully considered the pleas advanced from both sides. In classification of a product under CETA, 1985, first and foremost exercise is to determine the nomenclature, character and function of the product. With reference to the cumulative consideration of these factors, we have to identify it with one or the other heading/sub-headings of the tariff with reference to the relative Section Notes and Chapter Notes and the Interpretative Rules. CETA 1985 being a statute, well settled statutory rules of interpretation would further govern the interpretation of headings, sub-headings, Section Notes, Chapter Notes and Rules of Interpretation. 4.2 The product RLFW from its composition and method of manufacture is a preparation with a basis of ultramarine blue, an inorganic substance. As rightly pointed out by the appellants' learned counsel ultramarine blue constitutes the major active ingredient in the product, after excluding the quantity of `water' which simply acts as a medium. Character of the product, in our view is imparted by the ultramarine blue. Its function is to impart whiteness to the fabric. This is done by bluish tinting of the fabric by overshadowing of the yellow under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statutory tariff is aligned to the International Nomenclature (HSN here), HSN Explanatory Notes have a high persuasive value in determining classification of a product. We notice that Headings 34.02 of HSN and of CETA 1985 are pari materia. In these circumstances, there is no adequate ground to differ from HSN Explanatory Notes that washing preparations including auxiliary washing preparations should contain surface active agent or soap as an essential constituent. The product RLFW does not contain any soap or surface active agent. This heading will also not be applicable to the product under consideration. Learned JDR, however, submits that we should not rely on HSN Explanatory Notes because these are not of binding character and the plain language of Heading 34.02 does not envisage that there should be either soap or surface active agent as an essential constituent of washing preparations including auxiliary washing preparations. We are of the view that this argument is misconceived. It stems from an inadequate understanding of the term `washing preparations'. This expression implies a preparation which removes dirt or impurities from the object subjected to washing. Dirt or imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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