2000 (9) TMI 504 - AT - Central Excise

Summary

Issues Involved:
1. Classification of alumina balls/pellets/extrudates/lumps under the correct heading of the CETA, 1985.

Issue-Wise Detailed Analysis:

1. Classification of Alumina Balls/Pellets/Extrudates/Lumps:
The core dispute in the appeal is whether the appellants' product, alumina balls/pellets/extrudates/lumps, should be classified under heading 6907.00 of the CETA, 1985, as determined by the authorities below, or under sub-heading 3815.00 or 6901.00, as claimed by the appellant.

Contentions of the Appellant:
The appellants argue that their products should be classified under sub-heading 3815.00 or 6901.00 for the following reasons:
- The products are Catalyst Bed Supports or Alumina Bed Supports or Refractory Bed Supports, not Catalyst Support/Carriers.
- Similarity in preparation and use in catalyst reactors along with catalysts suggests inclusion in SH No. 3815.00.
- Due to their refractory character, resistance to thermal shock, high temperature, low porosity, and inertness, inclusion in Chapter SH No. 6901.00 is suggested.
- Different Commissionerates have classified these products under SH No. 6901.00 and SH No. 3815.00.
- Catalyst Supports and Catalyst Carriers are qualitatively different from Catalyst Bed Supports or Refractory Bed Supports.

Arguments on Appeal:
Shri B.N. Chattopadhyay, the consultant for the appellant, argues that the authorities below have misclassified the product under sub-heading 6907.00 based on the Board's instructions and the opinion of the Deputy Chief Chemist. He emphasizes that the product in question is not a catalyst support or carrier but a bed support. He supports his argument with technical data and orders from customers showing the use of alumina balls and lumps as bed supports. He also cites decisions from the Asstt. Commissioner of Jabbalpur and the Mumbai Commissionerate classifying the product under sub-heading 6901.00 and objects to the Deputy Chief Chemist's opinion on the classification.

Arguments by Revenue:
Shri R.K. Roy, the JDR for the Revenue, reiterates the reasoning of the authorities below.

Tribunal's Consideration:
The Tribunal considers the issue of whether alumina balls/pellets/lumps used as refractory bed support should be classified under heading 6901.00 or 6907.00. The Tribunal reviews the technical literature and the functions of the alumina balls, noting that they are used for bed support and toppings, not as catalyst supports. It finds that the product acts as a refractory material designed to work at high temperatures and meets the requirements of refractory goods.

Technical Literature and Properties:
The Tribunal examines the technical literature provided by the appellant, which shows that alumina balls/lumps are used for bed support and toppings, acting as filters to remove impurities and help in the uniform distribution of feed gas. The Tribunal notes that the product's properties, such as high refractoriness, resistance to chemical reactions, ability to withstand load under heat, resistance to thermal shock, and low volume change at service temperature, make it a refractory material.

Classification Decision:
The Tribunal concludes that the alumina balls/pellets/lumps are refractory ceramic goods and should be classified under heading 6901.00. It disagrees with the Deputy Chief Chemist's opinion and notes that the classification should be done by the Central Excise proper officer. The Tribunal also finds that heading 6907.00, which covers ceramic wares for laboratory, chemical, or other technical uses, does not apply to refractory materials designed for resisting high temperatures.

Board's Circular and Previous Orders:
The Tribunal finds that the Board's circular clarifying the classification of alumina balls/rings as carriers does not apply to bed supports. It also notes that the Asstt. Commissioner, Jabbalpur, classified alumina balls (refractory bed support) under heading 6901.00, and this order has attained finality as it was not appealed by the Revenue.

Conclusion:
The Tribunal holds that the alumina balls/pellets/extrudates/lumps used as toppings and bed support are properly classifiable under sub-heading 6901.00 of the CETA, 1985. The appeal is allowed in these terms.