1996 (1) TMI 224 - AT - Central Excise

Summary

Issues: Classification of Opacifiers under Chapter Headings 32.07 and 39.03

Classification of Opacifiers under Chapter Heading 32.07:
The appeal involved the classification of opacifiers under Chapter Heading 32.07. The appellants argued that the opacifiers they manufactured, known as "prepared opalisers," should be classified under Heading 32.07. They contended that the product is a prepared product of two monomers, Methyl Methacrylate and Styrene, with Styrene being preponderant. The appellants emphasized that the product is used as an opacifier to impart opacity to plastic sheets. They urged that the expression "of a kind" used in Heading 32.07 should be interpreted broadly and not restricted to specific industries like ceramic, enamelling, or glass. The appellants highlighted that the legislative intent did not include restrictive language like "exclusively" or "wholly" in Heading 32.07, indicating that the term "of a kind" should be construed liberally.

Arguments by the Appellants and the Department:
The appellants argued that the opacifiers should be classified under Heading 32.07 due to their function in imparting opacity to plastic sheets, while the Departmental Representative (DR) contended that opacifiers under Heading 32.07 are limited to those used in glass, ceramic, or enamel industries. The DR maintained that no extended meaning should be given to the phrase "of a kind" in Heading 32.07, as it clearly specifies opacifiers for the mentioned industries only. The DR asserted that the product in question should be classified under Heading 39.03, as it is a polymer of styrene.

Judgment and Analysis:
The Tribunal examined the full description of Heading 32.07, which includes prepared opacifiers used in the ceramic enamelling or glass industry. The Tribunal concluded that the opacifiers contemplated under Heading 32.07 are specifically related to the ceramic, enamelling, or glass industry. They found no indication in the heading to extend the interpretation of "of a kind" to industries beyond those mentioned. Therefore, the Tribunal held that the product, being used in the plastic industry, was not classifiable under Heading 32.07. Consequently, the product was classified under Heading 39.03, as agreed upon by the appellants. The Tribunal upheld the impugned order and dismissed the appeal based on the classification analysis and the specific industries mentioned under Heading 32.07.

Conclusion:
The judgment clarified the classification of opacifiers under Chapter Headings 32.07 and 39.03, emphasizing the specific industries to which opacifiers under Heading 32.07 are related. The decision highlighted the importance of interpreting legislative language in accordance with the specified industries and rejected the broad interpretation urged by the appellants. The classification was based on the functional use of the product and its alignment with the industries mentioned in the relevant headings, leading to the dismissal of the appeal.