1996 (5) TMI 383 - AT - Central Excise

Summary

Issues:
Classification of sulphate resistant cement under Chapter Heading 2502.20 or 2502.90.

Analysis:
The appeal involved the classification of sulphate resistant cement manufactured by the respondents under Chapter Heading 2502.20 or 2502.90. The Department contended that the cement should be classified under 2502.90 as a special grade cement, while the respondents claimed it should be under 2502.20. The Assistant Collector initially classified it under 2502.90, but the Collector (Appeals) ruled in favor of the respondents, leading to the Department's appeal.

The appellant argued that sulphate resistant cement is a distinct product intended for a different purpose, supported by various standards specifications. The appellant emphasized that the product's nomenclature as sulphate resistant cement signifies its uniqueness compared to ordinary portland cement. The appellant also cited a Supreme Court decision to support the argument that standard specifications alone cannot determine classification.

On the other hand, the respondent contended that the specifications from American, British, and Indian Standards Institutions clearly indicated that sulphate resistant cement is ordinary portland cement. The respondent argued that the Department failed to provide any technical literature to prove otherwise, shifting the onus of classification onto the Department. The respondent relied on legal precedents to support the argument that in the absence of contradicting evidence, the product should be classified based on standard specifications.

After hearing both sides, the Tribunal analyzed the specifications provided by the standards institutions and the Chemical Examiner's report, which described the sample as grey portland cement. The Tribunal noted that the Department did not present any technical literature to dispute the standard specifications defining sulphate resistant cement as ordinary portland cement. The Tribunal emphasized that in the absence of contradictory evidence, the Indian Standard Specification could be accepted, as per legal precedent. Consequently, the Tribunal upheld the classification of the product as grey portland cement under Chapter Heading 2502.20, rejecting the Department's appeal.