1989 (8) TMI 187 - AT - Central Excise

Summary

Issues:
Classification of "White Lead" under the Schedule to the Central Excise Tariff Act, 1985.

Analysis:
The judgment deals with the classification of "White Lead" under the Central Excise Tariff Act, 1985. The Assistant Collector initially classified the product under Heading No. 2805.90, while the Collector (Appeals) reclassified it under Heading 2804.60. The issue revolved around whether "White Lead" should be classified under salts and peroxysalts of inorganic acids and metals or under inorganic bases and oxides, hydroxides, and peroxides of metals.

The tribunal examined the chemical composition of "White Lead" as a lead carbonate, basic, and referred to various sources like the Condensed Chemical Dictionary and the Harmonised Commodity Description and Coding System. It was established that "White Lead" is a basic lead carbonate used in the manufacture of oil paints and as a drying pigment. The tribunal concluded that since "White Lead" is an inorganic salt of a metal and not specifically described elsewhere, it should fall under Heading No. 28.05 of the Schedule, specifically sub-heading 2805.90.

The tribunal rejected the argument that "White Lead" should be classified under the heading appropriate to paints and varnishes based on the repealed Central Excise Tariff Schedule. It emphasized that the repealed schedule and the current Tariff Act of 1985 are distinct. Therefore, "White Lead" is more suitably classified under Heading No. 28.05, sub-heading 2805.90 of the new schedule.

Furthermore, the tribunal noted that after a specific date, the classification of "White Lead" would change to Heading 28.36, sub-heading 2836.90 due to its carbonate nature. The judgment highlighted the erroneous classification by the Collector (Appeals) under Heading 2804.60, as lead carbonate is distinct from lead oxide, red lead, or orange lead, as per chemical definitions.

In conclusion, the tribunal found the Collector (Appeals) classification of "White Lead" under Heading 2804.60 to be incorrect and unsustainable. The impugned order was modified, and the appeal was allowed in favor of the appellant-Collector.