New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 525 - CESTAT CHENNAI

2016 (1) TMI 525 - CESTAT CHENNAI - 2016 (335) E.L.T. 51 (Tri. - Chennai) - Classification of chemically coated micronized minerals and Red-oxide power - Revenue 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 - Assessee classified the same under Chapter 25.05 of CETA - Held that:- Chapter note specifically covers products which are in the primary form which are crushed, ground, powdered, l .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d, 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 classification of red oxide the appellant classif .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

clearly confirms that they are rightly classifiable under 2821.10. - Demand of duty confirmed - Confiscation, fine and penalties are set aside. - Decided partly in favor of assessee. - E/731/2007 - FINAL ORDER No. 40047 / 2016 - Dated:- 4-1-2016 - Shri R. Periasami, Technical Member And Shri P.K. Choudhary, Judicial Member For the Petitioner : Shri J.C. Patil, Adv. For the respondent : Ms. Indira Sisupal, AC (AR) ORDER Per: R. Perisasami The present appeal is arising out of the OIO dated 28. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

leared 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

company. On appeal, Tribunal vide Final Order No. A/1429 - 1430/WZB/2005/G-II dated 09.06.2005, remanded the case to the adjudicating authority. The adjudicating authority in the impugned denovo order classified the chemically coated micronized minerals under Chapter sub-heading 3824.90 and confirmed the demand of ₹ 2,02,204/- for normal period (July, 99) and dropped the demand for the extended period. He classified the Red-oxide power under Chapter Sub-heading 2821.10 of CETA, 1985 and co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the demand for the extended period and confirmed the demand only for six months period and also imposed fine and penalty. The department classified all these minerals under 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 i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se reported in 2013 (288) ELT 120, 2009 (237) ELT 321, 2009 (161) ELT 748 and Final Order No. C-III/1220 to 1222/WZB/2003 dated 02.09.03. 4. As regards Red oxide, the Ld. Counsel submits that it is rightly classifiable under chapter 25.05, as there is no manufacturing activity involved. Whereas, the department has classified the same under 2821.10 and submits that the demand is limited only to six months and they have already filed the classification declaration and it is only a question of clas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g the structure of the product) but not products that have been roasted, calcined, obtained by mixing or subjected to processing beyond that is mentioned in each heading or sub-heading. She drew attention to page 106 at para 10.1 of OIO and submits that coated products are rightly classifiable under Chapter 3824.90 and red oxide powder is also rightly classifiable under chapter 2821.10, which is more specific heading than under Chapter 25. She further submits that penalties have been rightly imp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

turers 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 is only on the classification of coated minerals. On perusal of the proceedings and findings and details of the flow chart, manufacturing process which has been explained in the impugned order as well as in the SCN, the adjudicating authority in his denovo order has clearly discussed the issue and the directions given by the Tribunal i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding Ns. 25.01, 25.03 and 25.05 cover only products which have been washed (even with chemical substances, eliminating the impurities without changing the structure of the product), crushed, ground, powdered, levigated, sifted, screened, or concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation), but not products that have been roated, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading or sub-hea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hat 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 ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appellant is a manufacturer of chemically coated micronized minerals and in addition to uncoated products it is not the case of mixture of two products. By virtue of Chapter Note (2) of Chapter 25 chemically coated micronized minerals are rightly excluded from Chapter 25 therefore, the ratio of the citation relied on by the appellant is not applicable to the present case. Further, we also find that the appellants are regular manufacturers of both uncoated and coated micronized minerals and clear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 ea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version