1994 (8) TMI 92 - AT - Central Excise

Summary

Issues:
Classification of burnt lime under Central Excise Tariff - Chapter Heading 2505.60 or 2804.90.

Analysis:
The appeal arose from the order confirming the classification of burnt lime under Chapter Heading 2505.60 by the Collector (Appeals). The appellant initially classified burnt lime under Chapter Heading 2804.90, which was later modified by the Assistant Collector to 2505.00. The Assistant Collector confirmed the classification under 2505.00, leading to an appeal by the appellants. The Collector (Appeals) held that the impugned goods were in crude form and should be classified under Chapter 25 if not in crude form. The Assistant Collector upheld the classification under Chapter Heading 2505.00, leading to the appeal before the Tribunal.

The main contention was whether burnt lime should be classified under Chapter Heading 2505.60 or 2804.90. The appellant argued that burnt lime should be classified under Chapter Heading 28.25, not 2505.60, as it was not in a crude form due to roasting and calcination processes. The appellant relied on the interpretation of Chapter Note 2 of Chapter 25, excluding products obtained by roasting or calcination. The appellant also cited a Supreme Court judgment regarding classification based on chemical changes.

The Tribunal analyzed the manufacturing process of burnt lime, emphasizing the chemical changes due to calcination at high temperatures. The Tribunal interpreted Chapter Note 2 of Chapter 25, excluding products with chemical changes post-roasting or calcination. The Tribunal referenced previous cases and the Supreme Court judgment to support the exclusion of burnt lime from Chapter 25. The Tribunal concluded that burnt lime should be excluded from Chapter 25 and remanded the issue to the lower authorities for re-examination under Chapter Heading 28.25.

In conclusion, the Tribunal allowed the appeal by way of remand, directing the lower authorities to re-adjudicate the classification of burnt lime under Chapter Heading 28.25 based on the observations made in the order and after granting a hearing to the appellants.