TMI Blog2016 (1) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading or sub-heading. It is evident from the above that the products which are covered under Chapter 25 are the only products which has not undergone any further processing beyond washing, grounded, powdered and concentrated. In the present case, the product micronized minerals which has undergone the process beyond the processes mentioned in Chapter note 2 of Chapter 25. Therefore, by virtue of chapter note, the micronized minerals are chemically coated products which has undergone the process beyond the process mentioned in Section note 2 or chapter 25 of CETA. Therefore, the goods are rightly excluded from Chapter 25. As regards cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd classified them under Chapter 25.05 of CETA. In addition the have also cleared red-oxide, classified under 25.05 of CETA. DGCEI after investigation issued SCN and classified the chemically coated micronized minerals under Chapter sub-heading 3824.90 and Red-oxide power under Chapter Sub-heading 2821.10 of CETA, 1985 and on adjudication the adjudicating authority confirmed the demand of duty of ₹ 1,40,14,482/- being the duty not paid on clearance of chemically coated micronized minerals during the period 01.11.96 to 01.08.99 and confirmed the demand of duty of ₹ 10,51,098/- being the duty not paid on clearance f red oxide during the period 01.01.97 to 12.10.99 and also imposed penalty of ₹ 15,00,000/- under Rule 9(2), 52 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3824.90. He also submits that these products are coated and he drew attention to the process of manufacture given at page 117 and also he drew attention to the flow chart enclosed at page 185 and also drew attention to the expert opinion in annexure-6 at page 367 and submits that adding a coating agent of 0.1% to 0.5% which is steric acid and titanium coupling does not alter the basic nature of the mineral and the goods continue to remain as minerals classifiable under Chapter 25. He relied on the decision of the Hon ble Supreme Court in the case of Deepak Agro Solution Ltd. Vs. CC, Maharashtra reported in 2008 (227) ELT 52 (S.C.) and this Tribunal s Ahmedabad Bench decision in the case of Sulphar Mills Ltd. Vs. CCE, Surat, reported in 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding than under Chapter 25. She further submits that penalties have been rightly imposed on them. 6. After hearing both sides, we find that the short issue involved in this present case is limited to classification of the goods ie., chemically coated micronized minerals whether classifiable under 3824.90 as per Revenue or under 25.05 as claimed by the appellants and whether red oxide powder is classifiable under chapter 2821.10 or under 25.05 as claimed by the appellants and whether confiscation and penalty are imposable or otherwise. We find that the appellants are the manufacturers of both un-coated and coated products of various natural minerals like lime stone, talc, dolomite, barites, china clay and whiting etc. The present dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igated, sifted, screened, or concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation) and the chapter note specifically excludes products which are roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading or sub-heading. It is evident from the above that the products which are covered under Chapter 25 are the only products which has not undergone any further processing beyond washing, grounded, powdered and concentrated. In the present case, the product micronized minerals which has undergone the process beyond the processes mentioned in Chapter note 2 of Chapter 25. Therefore, by virtue of chapter note, the micronized minerals are chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and penalty. In the present case we find that the appellaint voluntarily paid the excise duty and the same was appropriated in the OIO. Therefore, we do not find any justification on the appellants arguments seeking classification under Chapter 25.05. Therefore, we hold that chemically coated micronized minerals are rightly classifiable under Chapter 3824.90 and not under Chapter 25.05. 7. As regards classification of red oxide the appellant classified it under Chapter 25.05 and the department re-classified it under chapter 2821.10. The red oxide which is otherwise known as iron oxide and earth colour are specifically classifiable under Chapter 2821.10 as iron oxide and red oxide. Therefore, we do not find any merit in the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
