2016 (12) TMI 1118 - AT - Central Excise

Classification of goods - 2048 Solution - classified under CETH 3206.19 of the Central Excise Tariff Act, 1985 or under CETH 27.15? - Held that - It is observed from the case records that the product 2048 solution manufactured by the respondent is consisting of Dark Brown coloured free flowing liquid composed of Bituminous materials in a medium of volatile organic solvent - From the Tariff description given for CETH 27.15, it is observed that Bituminous Mixtures including emulsions, suspensions and solutions based on natural asphalt, or natural bitumen etc. are classifiable under this heading. Reliance placed on the decision of the case of Shalimar Paints Ltd. vs. Commissioner of Central Excise, Calcutta 2001 (7) TMI 1284 - SUPREME COURT where it was also held that similar preparations based on Bituminous materials in a medium of volatile organic solvent are classifiable under CETH 27.15. Appeal allowed - decided in favor of Revenue.

Summary

Issues:
Classification of the product "2048 Solution" under Central Excise Tariff Heading (CETH) 3206.19.

Analysis:
The appeal was filed by the Revenue against the Order-In-Appeal dated 29.01.2007, where the First Appellate Authority upheld the classification of the product "2048 Solution" under CETH 3206.19. The respondent did not appear for the hearing on multiple occasions. The Revenue argued that the product should be classified under CETH 27.15 based on a chemical test showing it as a dark brown liquid composed of bituminous materials in a volatile organic solvent. The Revenue contended that the First Appellate Authority had wrongly classified the product under CETH 3206.19. The Revenue relied on a case law involving Shalimar Paints Ltd. to support their argument.

Upon review, it was found that the product "2048 Solution" indeed matched the description of Bituminous Mixtures under CETH 27.15, which includes mixtures based on natural asphalt or bitumen. Referring to the precedent set by the case of Shalimar Paints Ltd. vs. Commissioner of Central Excise, Calcutta, where similar preparations were classified under CETH 27.15, the Tribunal concluded that the "2048 Solution" should also be classified under the same heading. The Tribunal noted that the Supreme Court had upheld the decision in the Shalimar Paints case. Consequently, the appeal filed by the Revenue was allowed, and the Order-In-Appeal dated 29.01.2007 was set aside.

In summary, the judgment revolved around the correct classification of the product "2048 Solution" under the Central Excise Tariff Act. The Tribunal, following established case law and legal principles, determined that the product fell under CETH 27.15, aligning with Bituminous Mixtures, and overturned the previous classification under CETH 3206.19.