1985 (4) TMI 296 - AT - Central Excise

Summary

Issues: Classification of product 'Plastwel' under Central Excise Tariff - Whether it falls under Tariff Item No. 23(2) as cement or exempted under Item 68.

The judgment involves the classification of the product 'Plastwel' under the Central Excise Tariff, specifically determining whether it falls under Tariff Item No. 23(2) as cement or is exempted under Item 68. The appellants argued that their product, made from granulated blast furnace slag, fly ash, lime, and gypsum, is not cement as it does not contain clinkers or portland cement, essential for traditional cement manufacturing. They claimed their product was a substitute for cement and should be exempted from excise duty. The Deputy Collector and the Collector of Central Excise, Calcutta, classified 'Plastwel' as cement under Tariff Item No. 23(2), imposing duty and penalties. The appellants appealed to the Appellate Tribunal challenging the classification.

The Tribunal considered expert opinions and technical definitions of cement. The Chemical Examiner's report described 'Plastwel' as a mixture of blast furnace slag, lime, and gypsum, exhibiting properties of cement when mixed with water. The Tribunal noted that the product's composition and use for laying bricks aligned with common cement ingredients and applications. Referring to technical literature, the Tribunal highlighted that various types of cement, including non-portland cements, exist, not requiring clinkering in their manufacturing process. The Tribunal concluded that 'Plastwel' qualified as a variety of cement, specifically non-portland cement, as per the Central Excise Tariff and industry standards.

The Tribunal upheld the lower authorities' classification of 'Plastwel' under Tariff Item No. 23(2) of the Central Excise Tariff as cement, rejecting the appellants' appeal. However, the Tribunal found no justification for imposing a penalty, as the Order-in-Appeal did not confirm the penalty imposed by the original authority. Consequently, the appeal was disposed of without upholding the penalty.