1985 (9) TMI 250 - AT - Central Excise

Summary

Issues: Classification of product "Bituminous Black Varnish" under Central Excise Tariff Item 14II(ii).

The judgment by the Appellate Tribunal CEGAT, New Delhi pertains to the classification of the product "Bituminous Black Varnish" under the Central Excise Tariff Item 14II(ii). The case originated from a Revision Application filed by M/s. Jenson & Nicholson (India) Ltd., Calcutta, which was transferred to the Tribunal for disposal as an Appeal. The product in question was found to be a black colored liquid composed of Bitumin, Resin, and volatile organic solvent, resembling Varnish. The dispute arose when the Assistant Collector classified the product under Tariff Item 14II(ii) based on its composition and use for painting Oxygen Gas Cylinders.

During the hearing, the Appellant did not appear, but submitted a written letter requesting a decision based on the Revision Application. The Respondent, represented by Shri B.R. Tripathi, acknowledged that the case was similar to a previous judgment in the case of Dr. Beck & Co., which favored the Appellant. The Respondent left the decision to the Tribunal.

After considering the facts, arguments, and the previous judgment, the Tribunal found no reason to deny the benefit of the earlier decision in favor of the Appellant. The Tribunal referred to the previous judgment's analysis, highlighting that the product in question, containing bituminous matter and epoxy resin, was more appropriately classified as Coal Tar Black under Item 14II(ii) of the Central Excise Tariff. The Tribunal emphasized that the presence of resin did not preclude classification as Bituminous or Coal Tar Black, as varnish is defined as a liquid composition that forms a transparent film when applied, without the necessity of being resin-free.

Consequently, the Tribunal allowed the appeal, ruling in favor of the Appellant based on the classification of the product as Coal Tar Black under the Central Excise Tariff. The judgment provided a detailed analysis of the product's composition, characteristics, and relevant definitions to support its classification decision.