TMI Blog2000 (12) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... s declaration filed under Rule 173B of the Central Excise Rules, 1944 had been declaring the 'denatured salt' as one of the manufactured items and had claimed the classification thereof under chapter Heading 25.01. 3.On examination of the manufacturing process, it was noticed that the respondents have been purchasing raw materials namely Urea, Caustic Soda, Chlorine Gas etc. Caustic Soda and Chlorine gas are first reacted in a closed tank and the product so formed is transferred to another tank in which urea is already placed. Mixture in this tank is heated up to the temperature of 1000C. Heating is done with steam. The chemical reaction starts in this tank and on completion of the reaction Hydrazine in liquid form with other chemical pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a natural way without applying any process for denaturalisation of the salt ; that this Residue also contains some quantities of Urea and Caustic Soda, which were initially put in the chemical reaction. He submitted, therefore, these goods were a mixture of chemical compound and were nothing but a Residue of chemical and allied industries. 5.The ld. JDR submitted that page 184 of H.S.N. entries covered only salt which has been denatured by any process, Residuary Sodium Chloride in particular that left after chemical processing (e.g. electrolysis) or obtained as a bye-product of the treatment of certain ores; that in chemical processing like electrolysis, Residual Sodium Chloride in particular which is left over is from brine solution whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading 25.01, 25.03 25.05 covers only products which have been washed powdered or concentrated. Further the reasoning that the question of understanding a product by applying the principle of pre-dominance does not arise in this case as the product is clearly identifiable. The ld. DR also submitted that respondents herein have claimed classification of this product under chapter Heading 25.01 that chapter 25 covers only mineral products that note 1 to chapter 25 provides that this chapter covers in general, mineral products only; only mineral products which are in crude state or the products which have been crushed, ground, screened, concentrated are covered. The ld. DR therefore, submitted that Heading 38.23 of H.S.N. covers Residual produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of centrifuge; that this is a process of separation of crystallised material from other material formed during separation of manufactured Hydrazine through crystallisation and is specifically excluded by chapter note 2 to chapter 25 of CETA 1985. Ld. Counsel submitted that the maxim that the context otherwise requires read with chapter note 1 2 of H.S.N. as well as chapter note 2 appended to chapter 25 of the CETA 1985 do not limit that salt is to be obtained from mineral, ores, or Sea water only. Ld. Counsel also submitted that titles of Sections and the chapters are provided for ease of reference only and have no legal importance. Ld. Counsel also submitted that in the instant case Rules of classification are applicable as a conflict b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a treatment of certain ores. The product is obtained after crystallisation. The product is obtained as a bye-product or Residue while manufacturing Hydrazine. Hydrazine is admitedly a chemical. Thus the Residue in the instant case is nothing but a residue of chemical and allied industries. We note that there is specific heading for Residue of chemical and allied industries under the present chapter Heading 38.24. Since there is specific heading, we need not go to decide the issue by resorting to be Rules for interpretation of tariff. These Rules are attracted only when the heading is not specific or the product is a composite one. The question therefore, of any material being pre-dominantly present in the Residue does not arise in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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