1995 (5) TMI 124 - AT - Central Excise

Summary

Issues:
Classification of the product 'Amigen' under T.I. 15AA as 'Organic Surface Active Agent' or under T.I. 15A(1) as 'Amino plast'.

Detailed Analysis:

The issue in the present appeal was the classification of the product 'Amigen' manufactured by the appellants. The dispute was whether it should be classified under T.I. 15AA as an 'Organic Surface Active Agent,' as claimed by the appellants, or under T.I. 15A(1) as an 'Amino plast,' as contended by the department. The product had initially enjoyed classification under T.I. 15AA with exemption benefits under Notification No. 208/69.

The Assistant Collector of Central Excise and the lower Appellate Authority upheld the classification under T.I. 15A(1), considering the product as a result of condensation and not possessing the characteristics of an organic surface active agent. The appellants argued that 'Amigen' is indeed a surface active agent, supported by various affidavits and expert opinions indicating its use as a dye-fixing agent in the textile industry.

The Deputy Chief Chemist's reports played a crucial role in the classification dispute. The chemist found that 'Amigen' was a polymer with resinous characteristics, obtained through the condensation process of Amide and Formaldehyde, lacking typical surface active agent properties. The appellants' reliance on an earlier order-in-revision from 1969 was deemed irrelevant due to subsequent tariff restructuring in 1982, affecting the classification criteria.

Dr. S.P. Potnis's affidavit challenged the classification as an Amino plast, stating that 'Amigen' did not exhibit properties of Aminoplast and should not be considered a polymerized material. Despite conflicting expert opinions, the Tribunal emphasized the Deputy Chief Chemist's findings, disregarding the end-use certificates and affirming the classification under T.I. 15A(1) based on chemical synthesis criteria.

The Tribunal highlighted technical references supporting the classification as an Amino plast, citing the Encyclopedia of Chemical Technology and other authoritative sources. The decision favored the Deputy Chief Chemist's analysis over conflicting expert opinions, concluding that 'Amigen' fell under T.I. 15A(1) as an Amino plast, rejecting the appeal and upholding the Collector of Central Excise (Appeals), Bombay's order.