9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (7) TMI 131 - AT - Central ExciseWhether the respondent s product branded POLEYOL FSO was to be classified u/h 34.02 as an organic surface active agent as claimed by them or u/h 34.03 as a fat liquor as claimed by revenue - POLEYOL FSO is manufactured by mixing imported Sulphonated Fish Oil with water revenue not proved that surface active property of manufactured product is not required or as only subsidiary to its main function claim of classification of respondents u/h 34.02 is upheld
Issues: Classification of product "POLEYOL FSO" under Central Excise Tariff Act - Heading 34.02 or Heading 34.03
In this case, the primary issue revolves around the classification of the product "POLEYOL FSO" under the Central Excise Tariff Act. The appellant, the Revenue, contended that the product should be classified under Heading 34.03, while the respondent argued for classification under Heading 34.02. The dispute arose from the Department's show-cause notice proposing to classify the product under Heading 34.03 and demand excise duty, which was contested by the respondent. The Assistant Commissioner initially classified the product under Heading 34.03, leading to the appeal by the respondent to the Commissioner (Appeals), who ruled in favor of the respondent. The Revenue then appealed to the Appellate Tribunal CESTAT, Chennai. The appellant relied on various arguments to support their claim, including the statement of the Managing Director of the company regarding the use of "POLEYOL FSO" in the leather industry, the process of converting Sulphonated Fish Oil into the emulsion, and relevant legal precedents and circulars. They argued that the essential function of the product was fat liquoring, thus falling under Heading 34.03. The respondent, on the other hand, supported the decision of the Commissioner (Appeals). Upon careful consideration of the facts and submissions from both sides, the Tribunal analyzed the chemical composition and properties of the product. The product "POLEYOL FSO" was formed by mixing Sulphonated Fish Oil with water to create an emulsion. The Chemical Examiner's report confirmed that the product met the criteria of an organic surface-active agent under Note 3 to Chapter 34, thus falling under Heading 34.02. The Tribunal highlighted that for classification under Heading 34.03, the product should be a mixture of surface-active agent with mineral oils or fatty substances, which was not conclusively proven in this case. The Tribunal further addressed the argument regarding the surface-active function of "POLEYOL FSO" and its relation to fat liquoring. It emphasized the lack of evidence presented by the appellant to establish that the surface-active property was either not required or subsidiary to fat liquoring, which would warrant classification under Heading 34.03. The Tribunal also scrutinized the Board's Circular and other legal references cited by the appellant but found them inconclusive in determining the classification of the product. Ultimately, the Tribunal upheld the decision of the lower appellate authority, ruling that "POLEYOL FSO" should be classified as Sulphonated Fish Oil under Heading 34.02 of the Central Excise Tariff Act. The appeal by the Revenue was dismissed, emphasizing the failure to demonstrate that the surface-active function of the product was not essential or subsidiary to fat liquoring. The judgment was pronounced on 3rd July 2008 by the Appellate Tribunal CESTAT, Chennai.
|
