TMI Blog2009 (12) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... onducted by the Department while the Respondent claim that addition of 12-14% paraffin wax gives the product in question insulating property and in this regard they have cited “condensed chemical Dictionary - 1997 edition” according to which use of paraffin wax gives insulating properties - The adjudicating authority’s conclusions are based on similarly between the composition of ‘Type B Loid 1-7’ and ‘Type C Loid T-8’, which is factually incorrect as while ‘Type B Loid T-7’ does not has any paraffin wax, the product, in question, has 12-14% paraffin wax, which according to the Respondent gives it the insulating property. Therefore, we hold that CCE (Appeals)’s finding on the question of classification of ‘Type C Loid T-8’ are correct and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C Loid - 8" under SH 3208.90 on the ground that as per the information furnished by the Appellant about composition of "Type B Loid T-7" and "Type C Loid T-8", there is just minor difference between these compositions. A sample drawn from "Type C Loid T-8" was sent to CRCL for test and pending the test result the Assistant Commissioner vide order dated 3-11-92 ordered provisional assessment. The chemical examiner vide report dated 23-6-93 reported the sample of "Type C Loid T-8" to be a varnish but was silent as to whether it is insulating varnish. 1.2 The jurisdictional Superintendent of Central Excise issued show cause notices dated 3-6-92, 30-9-92 and 16-12-92 for recovery of duty amounting to Rs. 1,60,265/-, Rs. 1,03,415/- and Rs. 64 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as imposed. 1.4 On appeal to CCE (Appeals), the CCE (Appeals) vide order-in-original dated 21-5-2004 held that the product in question is classifiable under heading 3208.40 and set aside the Assistant Commissioner's order. 1.5 It is against this order of CCE (Appeals) that the present appeal has been filed by the Revenue. 2. Heard both the sides. 2.1 Shri Surendra Shah, the learned DR. reiterating the grounds of appeal pleaded that the Respondent manufactured two compounds Loid T-7 and Loid T-8 having similar constituents namely - carbon black, xylene, Trichioro ethylene, chlorinated rubber, Paraffin wax in different proportions, that both the products are used on outer surface of pipes in varying conditions, that in the test certif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r's finding that Loid 1-8 is not insulating varnish, is based on theoretical discussion, not on the basis of any test by the chemical examiner, that chemical examiner's report confirms that Loid 1-8 is a varnish, that since this product contains 12-14% Paraffin wax, it has electrical insulation properties, that as per condensed chemical Dictionary (1997 edition) use of paraffin wax gives insulating properties, that the product Loid T-7 does not contain paraffin wax, that without simultaneous test of samples from both the products - Loid T-7 and Loid 1-8, the Department can not conclude that both the products are the same, that since this was purely a classification dispute, penalty on the Respondent under Rule 9(2), 52A(8) and 173Q(1) impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemically modified natural polymers, or natural resins, whether or not modified, dispersed or dissolved in i non-aqueous medium solution as defined in note 3 to this Chapter. 3208.10 - Based on polymer 3208.20 - Based on Acrylic or vinyl polymers 3208.30 - Based on Cellular nitrate or other cellular derivatives 3208.40 - Insulating Varnishes 3208.90 - others" 5. The chemical examiner's report in respect of 'Type C Loid T-8' as given in para 3 of the order-in-original dated 24-2-97 is as under - "The sample is in form of dark brown coloured free flowing liquid. It is compound of bituminous matter, binding agent and volatile organ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
