1996 (8) TMI 287 - AT - Central Excise

Summary

Issues: Classification of goods under tariff headings 2833.00 and 3808.10

The judgment by the Appellate Tribunal CEGAT, Madras involved the classification of goods, specifically copper sulphate, under different tariff headings. The primary issue was whether the goods should be classified under heading 2833.00 as per the order passed by the CCE (A), Kochi, or under heading 3808.10 as contended by the appellants. The tribunal had to analyze the relevant provisions of Chapter 38 of the Central Excise Tariff (CET) to determine the correct classification based on the nature and use of the goods.

The learned Counsel for the appellants argued that the goods in question, copper sulphate, should be classified under tariff heading 3808.10, citing Chapter 38 of the CET. They emphasized that Chapter 38 excludes separate chemically defined elements or compounds except for specified categories like insecticides, fungicides, etc. The Counsel referred to a government certificate treating copper sulphate as an insecticide and a license issued for the manufacture of insecticides, supporting their classification argument. Additionally, they highlighted a relevant High Court judgment and a classification list by the Central Excise authorities to strengthen their case for classification under heading 3808.10.

The Respondent, represented by the learned DR, argued that copper sulphate could be used for various purposes and should be classified under heading 2833.00 as per the impugned order. They contended that the order was lawful and requested the dismissal of the appeal.

After considering the arguments and evidence presented, the tribunal analyzed Chapter 38 of the CET, specifically focusing on the mention of insecticides as a category. They noted the certificates and licenses obtained by the appellants, treating copper sulphate as an insecticide, along with the supporting High Court judgment and classification list. The tribunal concluded that the goods should indeed be classified under heading 3808.10, as they fell within the scope of insecticides as per the relevant provisions. Therefore, the impugned orders were deemed incorrect, and the tribunal set them aside, classifying the goods under heading 3808.10 and granting consequential relief to the appellants. The appeal was allowed in favor of the appellants based on the correct classification of the goods as insecticides under the applicable tariff heading.