1998 (3) TMI 318 - AT - Central Excise

Summary

Issues: Classification of "fire fighting foam compound, manufactured from horn and hoof meal of animals" under Chapter 5 as products of animal origin or under chapter sub-heading 3801.90 as other miscellaneous products of the chemical or allied industries.

In this case, the primary issue revolves around the classification of the "fire fighting foam compound" manufactured from horn and hoof meal of animals. The appellant argued for the classification under Chapter 5 as products of animal origin not elsewhere specified, while the Revenue contended for classification under chapter sub-heading 3801.90 as other miscellaneous products of the chemical or allied industries. The appellant sought admission of additional evidence in the form of certificates to support their claim that the goods were used in fire tenders, not fire extinguishers.

The appellant's counsel argued that the goods should not be classified as charges for fire extinguishers based on the HSN sub-notes under Heading 38.13. However, the tribunal found this argument unsustainable as the sub-notes did not limit the scope of coverage to specific preparations for fire extinguishers. The tribunal noted that the goods could only be classified under the residuary category with the description of "others" based on the Tariff Entry and sub-headings.

The tribunal analyzed whether the goods could be covered under Chapter 5, which included products of animal origin not elsewhere specified. Referring to the HSN, it was established that the coverage under this chapter was limited to materials of animal origin unworked or with simple preparations, such as hair, offal, skins, feathers of birds, bones, and shells of animals. The tribunal cited a previous judgment where crude grease obtained by solvent treatment of wool was classified as animal fat under Heading 15.01, emphasizing the importance of the manufacturing process in classification.

The tribunal examined the process of converting bone and hoof meal into the end product marketed by the appellants, highlighting the extensive processing involved. Despite the initial meal falling under the description of animal products, the tribunal concluded that the resultant products did not qualify for inclusion under Chapter 5 due to the elaborate processing.

The Collector's order extensively reasoned how the product qualified as miscellaneous products of the chemical or allied industries, citing Chapter Note 1(m) for the inclusion of preparations and charges for fire extinguishers. The tribunal emphasized that the term "preparations for fire extinguisher" should be interpreted broadly, especially considering the change in the Chapter Heading from the HSN. The classification lists provided by the appellants themselves indicated that the goods were specifically used for fire fighting, leading to the conclusion that the goods fell under Heading 38.01. As no alternative classification was claimed during the proceedings, the tribunal upheld the Collector's order and dismissed the appeal.