2006 (10) TMI 348 - AT - Central Excise

Summary

Issues involved: Classification of imported molten sulphur mixed with Bentonite powder and Magnesium Oxide under Central Excise Tariff.

Details of the Judgment:

1. Appellant's Contention: The appellant argued that the classification adopted by the Commissioner was not justified and that the item should be classified at nil rate of duty under Chapter Heading 25.05. They relied on a Tribunal ruling in a similar case and contended that mixing Bentonite was only for safe application of sulphur as a pesticide, not to create a new product. They emphasized that there was no chemical reaction or change in the characteristics of the product on mixing.

2. Tribunal's Ruling: The Tribunal considered previous judgments stating that mere mixing of items does not create a new product if there is no physical or chemical change. The appellant presented a chart showing similarities with a previous case. The JDR defended the order claiming the mixing created a new product, but failed to provide evidence to support this claim.

3. Decision: After careful consideration, the Tribunal found that the mixing of Bentonite Clay and Magnesium Oxide did not alter the chemical properties of the sulphur. They noted that the Revenue had not proven that a new product had been created. Following the precedent set in a previous case, the impugned order was set aside, and the appeal was allowed.

4. Operative Portion: The Tribunal pronounced the operative portion of the order in open court at the conclusion of the hearing.