2008 (2) TMI 679 - AT - Central Excise

Summary

Issues: Classification of goods as Marble or Dolomite, Imposition of redemption fine and penalty

Classification of goods as Marble or Dolomite:
The appellant appealed against a confirmed demand, arguing that the goods in question were Dolomite, not Marble as claimed by the authorities. The Chemical Analysis Report indicated that the goods were mainly composed of carbonates of calcium, magnesium, with a small amount of iron and siliceous matter. However, the Chemical Examiner stated that the samples were 'marble tiles' conforming to the characteristics of marble in terms of texture, structure, and porosity. The appellant contended that due to the lack of a clear opinion by the Chemical Examiner, the goods should not be classified as marble. The appellant referred to the H.S.N. Explanatory Report, stating that Dolomite is a natural double carbonate of magnesium, while the chemical report mentioned carbonates of calcium and magnesium, indicating it was not marble. The revenue argued that carbonates were a double crystallized form of dolomite, and the H.S.N. Explanatory note defined marble as a carbonate of calcium. The tribunal, after examining the Chemical Examiner Report, found no error in the impugned order classifying the goods as marble, as the report confirmed the characteristics of marble.

Imposition of redemption fine and penalty:
Regarding the redemption fine and penalty, the tribunal noted that as the issue revolved around the classification of goods and the initial report by the chemical examiner was not definitive, it was not a suitable case for imposing a fine and penalty. Consequently, the tribunal set aside the fine and penalty, disposing of the appeal accordingly.