1997 (7) TMI 439 - AT - Central Excise

Summary

Issues:
Classification of Burnt Lime and Burnt Dolomite under Central Excise Tariff Act, 1985.

Analysis:
The judgment involves four appeals concerning the classification of Burnt Lime and Burnt Dolomite under the Central Excise Tariff Act, 1985. The appellants, M/s. S.A.I.L. and M/s. I.S.S.C.O., manufactured these products for captive consumption within their factories. Initially, they classified the products under Tariff heading 2804.90 but received show cause notices proposing classification under sub-heading 2505.00. The Assistant Commissioner of Central Excise determined the correct classification under Heading 2505.00, leading to unsuccessful appeals before the Commissioner of Central Excise and subsequent appeals before the Tribunal.

The main issue in all four appeals was the classification of Calcined Lime (Burnt Lime) and Calcined Dolomite. The appellants argued that previous Tribunal decisions supported their classification under Heading 2804.90 based on Chapter Note 2 to Chapter 25, which excludes Calcined Products. On the other hand, the JDR for the respondents contended that the specific mention of Lime under sub-heading 2505.00 meant that Burnt Lime fell under Chapter 25, despite Chapter Note 2.

The Tribunal considered the submissions and previous decisions, emphasizing the importance of Section Notes and Chapter Notes in interpreting tariff entries. It noted that Chapter Note 2 to Chapter 25 excluded Calcined Products, leading to the earlier judgment that Calcined Lime and Dolomite were not under Chapter 25. The Tribunal rejected the argument that the amendment to Chapter Note 2 in 1990 clarified the classification, holding that it did not affect the products' classification before the amendment.

The Tribunal dismissed the reliance on dictionary meanings and HSN Explanatory Notes, stating that Chapter Notes and statutory tariff provisions were paramount in classification. It reaffirmed that Chapter Note 2's exclusion of Calcined Products was clear and binding, rendering the dictionary meanings and HSN Explanatory Notes irrelevant in this context.

Ultimately, the Tribunal allowed all four appeals, upholding the classification of Burnt Lime and Burnt Dolomite under Heading 2804.90 based on Chapter Note 2 to Chapter 25. The judgment appreciated the efforts of the Departmental Representative but maintained the classification based on statutory provisions and previous Tribunal decisions.