1998 (8) TMI 255 - AT - Central Excise

Summary

Issues Involved:
Classification of Lead-Oxide-Grey under Central Excise Tariff Act, 1985 - Heading 2824.00 or 3823.00.

Detailed Analysis:

Issue 1: Classification of Lead-Oxide-Grey

The appellants, engaged in manufacturing Lead-Oxide-Yellow, Red, and Lead sub-Oxide, claimed classification under sub-heading 2824.00. However, the department proposed classification under sub-heading 3823.00, considering Lead Oxide Grey as a specially prepared mixture used in battery manufacture. The appellants argued Lead Oxide Grey is an inorganic chemical under Chapter 28, not specifically mentioned in Chapter 38.23. They highlighted differences in chemical properties, usage in various industries, and continuity of previous classification under Chapter 28.

Issue 2: Department's Classification and Appeals

The Assistant Collector classified Lead Oxide Grey under Heading 38.23, citing controlled oxidation and a trade notice classifying it as such. The appellants' appeal was unsuccessful, leading to the present appeals. The consultant argued against exclusive battery use and the department's change in classification despite consistent previous classification under Chapter 28.

Issue 3: Arguments and Decision

The Revenue argued Lead Sub Oxide Grey's classification was settled by precedent, emphasizing partial oxidation and free metal lead presence. They contended classification is not based on usage and justified reclassification due to prior errors. The Tribunal analyzed previous decisions, noting Lead Sub Oxide's composition and the relevance of HSN Explanatory Notes, ultimately rejecting the appeals based on classification under Tariff Entry 2824.00.

Separate Judgment by Vice President:

The Vice President clarified the material as a specially prepared mixture with controlled oxidation, not a pure oxide. Emphasizing the presence of lead mono-oxide and metallic lead, he rejected the appellants' arguments regarding technological necessity and multiple uses. Referring to the Tribunal's precedent, the Vice President upheld the classification under Heading 38.23, leading to the rejection of both appeals.

This detailed analysis covers the classification dispute of Lead-Oxide-Grey under the Central Excise Tariff Act, 1985, addressing arguments, precedents, and the final decision by the Tribunal, including a separate judgment by the Vice President.