1995 (6) TMI 96 - AT - Central Excise

Summary

Issues: Classification of DABP as dutiable under Central Excise Tariff Act, 1985.

The judgment pertains to the classification of Diamino Benzophenone (DABP) as dutiable under the Central Excise Tariff Act, 1985. The appellants argued that DABP emerging in the manufacture of Mebendazole is in crude form and not marketable, thus not subject to duty. They relied on an expert affidavit to support their claim. However, the Department classified DABP under Heading 2913.00 as "other organic compounds" based on Chapter Note 1 to Chapter 29 of the Tariff Act. The Department contended that the chemical structure of DABP at the intermediate stage and the marketable stage remains the same, indicating marketability. The Tribunal noted that the Tariff Act requires classification based on the heading, section, chapter notes, and interpretation rules. The expert affirmed that the chemical structure of crude DABP and marketable DABP is identical, and the latter is internationally traded. Consequently, the Tribunal held that DABP at the intermediate stage is dutiable under Heading 2913.00, in line with Chapter Note 1(a) of the Tariff Act, and dismissed the appeal.

The key contention revolved around whether DABP at the intermediate stage of Mebendazole production is dutiable under the Central Excise Tariff Act, 1985. The appellants argued that crude DABP is not marketable and, therefore, not subject to duty. They presented an expert affidavit to support their position. On the contrary, the Department classified DABP under Heading 2913.00 as "other organic compounds," emphasizing the chemical similarity between crude and marketable DABP. The Tribunal highlighted the importance of interpreting the Tariff Act based on headings, chapter notes, and rules. The expert confirmed the identical chemical structure of both forms of DABP and its international trade, indicating marketability. Consequently, the Tribunal upheld the classification of DABP at the intermediate stage as dutiable under the Tariff Act, leading to the dismissal of the appeal.