2005 (3) TMI 297 - AT - Central Excise

Summary

Issues: Classification of chemical preparations captively consumed in processing cinematographic films under CH 3707.00 of CETA, 1985.

Analysis:
1. The appeal concerned the classification of chemical preparations used in processing cinematographic films under CH 3707.00 of CETA, 1985. The Commissioner (Appeals) had rejected the departmental appeal, upholding the view that the products prepared by the assessee did not have a shelf life and were not marketable.

2. Upon detailed examination, both authorities concluded that the item in question was not marketable and did not have a shelf life, which was deemed correct. The Revenue failed to provide evidence to the contrary. The Tribunal cited several judgments favoring the assessee, such as Bombay Film Laboratories (P) Ltd. v. CCE, Mumbai, where it was held that Hypo solution used in film processing was not excisable.

3. The learned SDR relied on the judgment in Camlin Ltd. v. CCE, Mumbai, regarding Crayplass compound being marketable. However, in the present case, factual findings determined that the chemical solution consumed captively lacked shelf life and marketability. Another judgment, Cipla Limited v. CCE, Bangalore, concerning Benzyl Methyl Salicylate, a drug intermediate, was distinguished as it had proven shelf life and marketability, unlike the situation at hand.

4. In conclusion, the appeal was dismissed as there was no merit in challenging the findings that the chemical preparations in question were not marketable and did not have a shelf life. The judgment highlighted the importance of factual determinations in assessing the classification of goods under relevant provisions of the law.