2024 (9) TMI 689 - AT - Central Excise

Classification of goods - Activated Earth or Washed Clay/BLEACH-9 - to be classified under chapter sub heading No. 25.05 claiming NIL rate of duty or under chapter sub heading 38.02 of the first schedule to the Central Excise Tariff Act, 1985 - HELD THAT - The adjudicating authority has reached the conclusion that the goods manufacture by the respondent assessee, as per the technical opinion given by M. M. Shah of M/s. Vaibhav Environ Consultant as well as by Dr. Chandrasekharam, IIT Mumbai vide its letter dated 21st October, 2007, wherein it has been opined that Bleach-9 is also raw clay and not Activated Clay / Earth. It has been mentioned that the clay washed with water and dried is not termed as Activated Clay and therefore the properties of the raw clay washed with water will not have different chemical parameters and therefore shall remains same as that of the natural clay. The same opinion has been given by Shri M. M. Shah of M/s. Vaibhav Enviro Consultant dated 22nd October, 2007. The department has not adduced any evidence to contradict the findings given the above two reports which has formed the basis of adjudicating authority to decide classification of that the product Bleach-9 under Central Excise Tariff heading 25.05. Thus, no fresh evidence has been adduced by the department to challenge the findings given in the impugned order-in-original as well as order-in-appeal - there are no merit in the appeal of the department - appeal dismissed.

Summary

Issues:
Classification of product 'Bleach-9' under Central Excise Tariff Act, 1985.

Analysis:
The judgment involves the classification of the product 'Bleach-9' under the Central Excise Tariff Act, 1985. The respondent, engaged in manufacturing and clearance of 'Washed Clay' under the trade name 'BLEACH-9', was accused by the department of misclassifying the product as 'Activated Earth' under chapter subheading No. 25.05 to claim a NIL rate of duty. The department contended that the product should be classified under chapter subheading 38.02, attracting Central Excise duty. Various show cause notices were issued, and after adjudication, the original authority held that the product falls under chapter subheading 25.05 and attracts a NIL rate of duty. The department appealed this decision, leading to the current appeal.

The original adjudicating authority based its decision on technical opinions and test reports. These reports, including opinions from experts like Dr. Chandrasekharam and Shri M. M. Shah, concluded that 'Bleach-9' is raw clay and not activated clay. They stated that washing the clay with water does not change its properties significantly, leading to the classification under chapter subheading 25.05. The Commissioner (Appeals) upheld this decision, emphasizing the lack of contradictory evidence on record. The department failed to provide new evidence challenging the findings of the original authority and the Commissioner (Appeals).

Ultimately, the Appellate Tribunal found no merit in the department's appeal as no fresh evidence was presented to dispute the classification of 'Bleach-9' under chapter subheading 25.05. The appeal was dismissed, affirming the classification of the product as per the original decision. The judgment was pronounced on 10.09.2024 by the Appellate Tribunal CESTAT AHMEDABAD, with Hon'ble Mr. Ramesh Nair as the Member (Judicial) and Hon'ble Mr. C L Mahar as the Member (Technical).