1994 (11) TMI 237 - AT - Central Excise

Summary

Issues:
Classification and rate of duty of ultramarine blue in large and small packings under different headings.

Analysis:
The appeals were filed concerning the classification and rate of duty of ultramarine blue products in large and small packings. The department classified ultramarine blue under Heading 32.06.90 for large packings and under 3212.90 for small packings based on the description of the product. The appellant argued that once a product is classified under a specific heading, it should remain classified under that heading regardless of packing size, citing the lack of distinction under Heading 32.06. Additionally, they contended that ultramarine blue did not fall under the pigment category of Heading 32.12, referencing a judgment from the Andhra Pradesh High Court.

During the proceedings, the Departmental Representative (D.R.) referred to a judgment from the Calcutta High Court, which was based on the old Tariff, unlike the relevant Andhra Pradesh High Court judgment based on the new Tariff. The Andhra Pradesh High Court judgment acknowledged the Calcutta High Court and Supreme Court judgments, along with a Gujarat High Court judgment. The appellant highlighted that the Customs Tariff under Heading 32.06 specifically mentioned ultramarine blue, supporting their classification argument.

The Tribunal analyzed the submissions and observed that the distinctions between colorants classifiable under Heading 32.06 and pigments under Heading 32.12 were significant. They referenced the Andhra Pradesh High Court judgment, emphasizing that the term "other colouring matter" in Heading 32.12 should be interpreted in the context of dyes. The Tribunal noted that ultramarine blue, as an inorganic preparation in powder form, was distinguishable from pigments. They also referenced the properties and uses of ultramarine blue to support their classification decision.

The Tribunal concluded that ultramarine blue should be classified under Heading 32.06, irrespective of packing size or use, as the heading did not make such distinctions. Therefore, they accepted the appeal of the appellant and dismissed the appeal of the department. The decision was based on the classification principles and the specific characteristics of ultramarine blue as a colorant.