1987 (5) TMI 263 - AT - Central Excise

Summary

Issues:
- Classification of Nigrosine under Tariff Item No. 14D CET or T.I. 68 CET.

Analysis:
1. The appeal was against the order of the Collector of Central Excise (Appeals), Bombay, which classified Nigrosine as a synthetic organic dyestuff assessable under Tariff Item No. 14D CET. The appellants argued that Nigrosine was not used in a dyeing process as required under T.I. 14D and should be assessed under T.I. 68 CET.

2. The appellants' counsel contended that for goods to be covered under 14D, they must be used in a dyeing process. The Tribunal's previous judgments clarified that the phrase "used in any dyeing process" qualified only synthetic organic derivatives and not all items under the Tariff. The counsel emphasized that Nigrosine was not used for dyeing purposes in the country, as dyeing typically referred to coloration of textiles. The technical description of Nigrosine as a solvent dye supported the argument that it fell under synthetic organic dyestuffs, despite not being used for textile dyeing.

3. The Department argued that Nigrosine was a synthetic organic dyestuff falling under 14D CET based on a Test Report and the Order-in-Appeal's reasoning. However, the Tribunal's interpretation of the Tariff item and the technical description of Nigrosine as a solvent dye were crucial in determining its classification.

4. The Tribunal extensively analyzed the scope of T.I. 14D in previous cases and concluded that Nigrosine, being a synthetic organic dyestuff, fell under this category despite not being used in textile dyeing. The Tribunal's reliance on the Customs Co-operation Council Nomenclature (CCCN) and the technical descriptions of Nigrosine as a solvent dye supported this classification. The judgment emphasized that the CCCN notes clarified that synthetic organic dyestuffs used for coloring various products were covered under T.I. 14D.

5. In a separate order, another Vice-President of the Tribunal concurred with the classification of Nigrosine under T.I. 14D, citing a previous case's findings that synthetic organic dyestuffs included products used in coloring petroleum, soap, plastics, etc., not just textile dyeing. Despite reservations about using CCCN explanatory notes, the Tribunal's precedent established that Nigrosine qualified as a synthetic organic dyestuff under T.I. 14D, warranting its classification under this Tariff item.

6. Ultimately, the Tribunal rejected the appeal, affirming the classification of Nigrosine under Tariff Item No. 14D CET based on its nature as a synthetic organic dyestuff, even though it was not utilized in the dyeing process of fabrics. The judgments and technical descriptions supported this classification, highlighting the broad scope of synthetic organic dyestuffs encompassed under T.I. 14D.