1998 (5) TMI 58 - SC - Central Excise

Classification of white cement - Held that - Appeals are allowed, the impugned judgment and order of the Tribunal is set aside and the appellants contention that prior to 28-2-1986 the Item manufactured by them was classifiable under Tariff Item 23(i) while after 28-2-1986 and upto 1-3-1992, it was classifiable under Tariff Item 2502.20 is upheld. The appellants will be entitled to all consequential reliefs in accordance with law.

Summary

Issues:
Classification of white cement under Central Excise Tariff for different periods.

Analysis:
1. Classification Prior to 28-2-1986:
- The Tribunal held that rapid hardening cement in Entry 23(i) refers only to grey portland cement with rapid hardening quality, not white cement. Appellants argued that each item in Entry 23(i) should be read separately, covering both grey and white cement with rapid hardening properties. The Tribunal's decision was based on the Residuary Entry 23(ii) for white cement.

2. Classification from 28-2-1986 to 1-3-1992:
- The Tribunal classified the appellants' product under Residuary Entry 2502.90, while appellants contended it should be under Entry 2502.20. The entries were similar to the old Entries 23(i) and 23(ii), with the Tribunal favoring the Residuary Entry.

3. Classification from 1-3-1992:
- Entry 2502.21 expressly covered white cement, whether or not with rapid hardening quality, resolving the classification issue for this period.

4. Technical Evidence and Interpretation:
- The appellants presented literature and test certificates proving their white cement had rapid hardening properties. Reports from various institutes confirmed compliance with standards for rapid hardening portland cement. The Department, however, classified it based on color, not properties.

5. Legal Precedent and Technical Composition:
- Reference was made to a previous case distinguishing white cement from grey portland cement. However, the appellants argued that rapid hardening cement can be grey or white, emphasizing that rapid hardening property is not color-dependent.

6. Judgment and Conclusion:
- The Supreme Court allowed the appeals, setting aside the Tribunal's decision. It upheld the appellants' classification claims for different periods, emphasizing that rapid hardening white cement should not be excluded from the classification under the "Rapid Hardening Cement" category. The appellants were entitled to consequential reliefs without costs.