2004 (2) TMI 418 - AT - Central Excise

Summary

Issues:
1. Excisability of "Crayplas Compound"
2. Correct classification of the product

Excisability of "Crayplas Compound":
The appeals involved common issues regarding the excisability of the "Crayplas Compound" manufactured by the appellants. The Tribunal had previously held in a related case that the Crayplas compound is a marketable commodity. The question of correct classification was remanded to the Commissioner for a fresh decision. In a subsequent order, the Tribunal determined that the Crayplas shapeless plastic crayons are more akin to crayons under sub-heading 9609.00 than to pigments under sub-heading 3204.19. The Tribunal concluded that the product in dispute is excisable goods and falls under CETA sub-heading 9609.00 with a Nil rate of duty.

Correct classification of the product:
The Tribunal held that the "Crayplas Compound" should be classified under CETA sub-heading 9609.00, which carried a Nil rate of duty throughout the period in dispute. The appeals were disposed of by setting aside the impugned order that classified the product under CETA sub-heading 3204.10 as synthetic organic colouring matters. The Tribunal's decision clarified the correct classification of the product based on its essential characteristics and resemblance to finished crayons rather than pigments and preparations.