1990 (6) TMI 165 - AT - Central Excise

Summary

Issues Involved:
1. Classification of various coal tar products under the Central Excises & Salt Act, 1944.
2. Eligibility for duty exemption under various notifications.

Issue-wise Detailed Analysis:

1. Classification of Various Coal Tar Products:

The appellants manufacture several coal tar products and filed a classification list effective from 1-3-1983. The dispute before the Assistant Collector covered 21 products, excluding Shalijet Sealing Compound and Shalijet Primer. The classification and the Assistant Collector's decisions are summarized as follows:

- Distilled Tar: Classified under Item 11(5), but not eligible for exemption under Notifications 121/62 and 133/82 because these notifications did not cover partially distilled tar.
- Road Tar 3 and Road Tar 2: Provisionally approved under Item 68, CET. Samples were to be tested for conformity with IS Specification No. 216:1961 for Road Tar.
- Soft Pitch, Soft Medium Pitch, Hard Pitch, Hard Medium Pitch, Special Hard Pitch, Electrode Pitch: Classified under Item 68, CET. Item 11(5) covers only blends of pitch with specified materials, not straight run pitch.
- Pitch Creosote Mixture: Classified under Item 11(5) but not eligible for Notification 121/62.
- Tar Seal for Gas Holder: Classified under Item 68. Notification 121/62 not applicable.
- Modulate and Plasticised Pitch: Classified under Item 68. Notification 121/62 not applicable.
- Tar Stil Tar, Tarstil Special, Shalimastic L.C., Jet Set Primer: Classified under Item 11(5) but without the benefit of Notification 121/62.

2. Eligibility for Duty Exemption Under Various Notifications:

- Soft Pitch, Soft Medium Pitch, Hard Pitch, Hard Medium Pitch, Special Hard Pitch, Electrode Pitch: The appellants argued that these products should be eligible for duty exemption under Notification 121/62, which exempts tar from excise duty. However, the Tribunal upheld the classification under Item 68, CET, following the decision in Indian Aluminum Co Ltd. v. Collector of Customs, Cochin, which held that coal tar pitch is distinct from coal tar or partially distilled tar.
- Distilled Tar and Road Tar: The Tribunal found no reason to deny the benefit of Notification 121/62, as the term "Tar" should cover tars of all types, including partially distilled tar.
- Pitch Creosote Mixture and Tar Seal for Gas Holder: These blends are not covered by Notification 121/62, which applies only to tar and not blends of pitch with creosote oil or other coal tar distillation products.
- Modulate and Plasticised Pitch: Classified under Item 68, CET, and not eligible for Notification 121/62.
- Tar Stil Tar, Tarstil Special, Shalimastic L.C., Jet Set Primer: Classified under Item 11(5) but without the benefit of Notification 121/62.

Separate Judgment by S.L. Peeran:

S.L. Peeran disagreed with the majority opinion and provided a detailed analysis, emphasizing that the products should be classified under Item 11(5) and eligible for exemption under Notification 121/62. He argued that the products are derivatives of tar and should be included in the classification under Item 11(5).

Final Order of the Bench:

The impugned order was modified to the extent indicated in paragraphs 8 to 12, with consequential relief to the appellants. The appeal was partially allowed.