2004 (6) TMI 488 - AT - Central Excise

Summary

Issues: Classification of Alginic Acid and Sodium Alginate under Central Excise Tariff - Tariff Item 68 vs. Tariff Item 15A(1)

In this case, the main issue revolves around the classification of Alginic Acid and Sodium Alginate under the Central Excise Tariff, specifically whether they should be classified under Tariff Item 68 or Tariff Item 15A(1). The Commissioner of Central Excise (Appeals) upheld the respondents' claim for classification under Tariff Item 68, setting aside the Assistant Commissioner's classification under Tariff Item 15A(1).

The Tribunal considered the definition of Synthetic Resins from the Hawley Condensed Chemical Dictionary, which defines Synthetic Resins as man-made high polymers resulting from a chemical reaction between substances. The Tribunal noted that Alginic Acid and Sodium Alginate, with a molecular weight of around 3,137, do not qualify as synthetic resins under Tariff Item 15A(1). While Alginic Acid is an artificial resin, it is not automatically classified under Tariff Item 15A(1) as only artificial resins of high polymers fall under this category based on the definition of synthetic resins.

Ultimately, the Tribunal found no reason to interfere with the Commissioner (Appeals)'s decision, as the products in dispute, Alginic Acid and Sodium Alginate, do not meet the criteria for classification under Tariff Item 15A(1). Therefore, the Tribunal upheld the decision of the lower appellate authority and rejected the appeal, confirming the classification of Alginic Acid and Sodium Alginate under Tariff Item 68 of the Central Excise Tariff.