1991 (10) TMI 161 - AT - Central Excise

Summary

Issues:
Classification of products - Picture varnish and Gloss-o-Gloss under Central Excise Tariff Act, 1985.

Detailed Analysis:
The appellant challenged the order of the Collector (Appeals) rejecting their plea that their products, picture varnish and Gloss-o-Gloss, are not classifiable under Chapter Heading 3208.90 of the Central Excise Tariff, 1985. The department issued a show cause notice asking for classification under Chapter No. 3210.90, citing that the solid content of the products exceeded 50%, falling under Note 3 to Chapter 32. The appellant argued that the products are used in printing and not for painting, are sold as non-aqueous solutions, and should be classified under TI 3208.90. The Assistant Collector classified the products under Tariff Item 3208.90 based on their composition and usage in printing industries.

The appellant appealed before the Collector (Appeals), claiming misclassification under Tariff Item 3208.90. They argued that the products should not be considered non-excisable and should be classified under Heading 3208 based on Chapter Note No. 3. The Collector (Appeals) noted that the appellant's contentions were not raised before the Assistant Collector and rejected the appeal, stating that the products fell within the purview of Tariff Item 3208.90 due to their composition and usage, despite the solvent content being below 53%.

The appellant further contended that Chapter Note 3 excludes their products from Heading 3208, making them non-excisable. They argued that Rule 5 of the interpretation rules supported their classification under Chapter Heading 3208 but outside 3208.90. The tribunal considered both sides' submissions and analyzed the Chapter Note 3, clarifying that even if the solvent content is below 53%, the products are covered under Chapter Heading 32.08. The tribunal upheld the Collector's decision, confirming that the products fall within the classification of Tariff Item 3208.90.

In the final analysis, the tribunal dismissed the appeal, finding no merit in the appellant's arguments. The tribunal affirmed that the products, picture varnish, and Gloss-o-Gloss, are correctly classified under Tariff Item 3208.90 of the Central Excise Tariff Act, 1985, based on their composition and the provisions of Chapter Note 3 to Chapter 32.