1995 (7) TMI 208 - AT - Central Excise

Summary

Issues: Classification of X-Ray and Lith developer powders under Chapter sub-heading 3706, classification of photographic mounts under Chapter sub-heading 4818.90

Classification of X-Ray and Lith developer powders under Chapter sub-heading 3706:
The appellants argued that the X-Ray and Lith developer powders are made from bought out chemical ingredients through physical mixing, without any chemical reaction, and thus do not undergo a process of manufacture. They contended that the powders are not put up in a form ready for use in photography as they need to be dissolved in water before use. The Departmental Representative (D.R.) countered that the powders are correctly classified under Heading 37.06 as chemical preparations for photographic uses. The Tribunal referred to the test of "manufacture" laid down by the Supreme Court, which focuses on whether the changes brought about by processes result in a distinct and new article. The Tribunal found that the developer powders, being marketed as distinct products with specific uses and characteristics, are new articles emerging from the mixing and packaging process. Consequently, the powders were held to be classifiable under sub-heading 3706.00 CETA.

Classification of photographic mounts under Chapter sub-heading 4818.90:
Regarding the photographic mounts, the appellants claimed that the product is merely converted paper board, created by bonding duty-paid paper and board with adhesive, cutting into different sizes, and printing and embossing. They argued that the product falls under sub-heading 4807.99 CETA as board remains board after these processes. The Tribunal disagreed, stating that the processes of pasting, cutting, embossing, and printing transform the grey boards into recognizable photo mounts, distinct from converted paper. The Tribunal noted that commercially and in common parlance, the product is known as "photo mounts," aligning with the dictionary definition of a stiff paper providing a margin for a picture. Consequently, the Tribunal upheld the classification of photographic mounts under sub-heading 4818.90 CETA, rejecting the appeal against the lower authorities' order.

In conclusion, the Tribunal affirmed the classification of X-Ray and Lith developer powders under Chapter sub-heading 3706 as chemical preparations for photographic uses and upheld the classification of photographic mounts under Chapter sub-heading 4818.90 as articles of paper. The appeal against the Collector of Central Excise's order-in-appeal was rejected, and the original orders were upheld.