1990 (11) TMI 280 - AT - Central Excise

Summary

Issues involved: Classification of goods as Ordinary Portland Cement under Tariff Item 23 for duty payment.

Summary:
The appeal considered whether goods described as 'Plaster of lime' manufactured by the appellants should be classified as Ordinary Portland Cement under Tariff Item 23 for duty payment. The Chemical Examiner's report initially classified the goods as Ordinary Portland Cement, leading to a demand for duty payment. However, subsequent tests by the Chief Chemist and National Test House revealed deviations from ISI specifications, particularly in loss on ignition and lime percentage. The appellants argued that their goods were exempt from duty under Notifn. 5/70-C.E. and did not meet the ISI specifications for Ordinary Portland Cement. They also contended that the test results should only have prospective application. The Collector imposed duty and penalty, but the appeal was allowed as the tests did not conclusively prove the goods were Ordinary Portland Cement, leading to the order being set aside.

The appellants' arguments included the exemption from duty under Notifn. 5/70-C.E., the description of goods in sale bills, the machinery in their factory not being capable of producing Ordinary Portland Cement, and the non-conformity to ISI specifications. They also challenged the retrospective application of test results and the rejection of their defense arguments by the Collector.

The Chief Chemist and National Test House reports highlighted deviations from ISI specifications, particularly in loss on ignition and lime percentage, indicating the goods did not meet the requirements for Ordinary Portland Cement. The Ministry of Finance's letter emphasized the need for conformity to ISI specifications for Ordinary Portland Cement. The appeal was allowed based on the lack of conclusive evidence that the goods were Ordinary Portland Cement, leading to the order being set aside.