2018 (12) TMI 1573 - AT - Central Excise

Classification of the product - Ground Natural Calcium Carbonate - whether classifiable under chapter heading 25.30 of Central Excise Tariff Act, 1985 or are classified under chapter heading 2836 of Central Excise Act? - Held that - On going through the test report, it is found that the product namely Ground Natural Calcium Carbonate is altogether different from Precipitated Calcium Carbonate , therefore, in the light of the decision of the Tribunal in the case of Shakshi Makfin 2015 (12) TMI 1638 - CESTAT CHANDIGARH , the product in question having merit classification under chapter heading 25.30 of Central Excise Tariff Act, 1985. The appellant has correctly classified the Ground Natural Calcium Carbonate under chapter heading 25.30 of Central Excise Tariff Act, 1985 as Revenue has failed to produce any corroborative evidence in support of their classification - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Classification of "Ground Natural Calcium Carbonate" under Central Excise Tariff Act, 1985.

Comprehensive Analysis:

Issue 1: Classification of "Ground Natural Calcium Carbonate"

The appellant challenged the demand of ?2,88,22,592/- confirmed along with interest and penalty for the period August 2006 to March 2011, claiming that their product "Ground Natural Calcium Carbonate" should be classified under chapter heading 25.30 of Central Excise Tariff Act, 1985 instead of chapter heading 28.36 as determined by the Revenue. The appellant had been manufacturing Precipitated Calcium Carbonate classified under Chapter heading 28 previously. The dispute arose when the appellant introduced the new product "Ground Natural Calcium Carbonate" and claimed that it should be classified under chapter 25. The Revenue issued a show cause notice and after adjudication, classified the product under chapter heading 28.36. The appellant contended that the product was different from Precipitated Calcium Carbonate and should be classified under chapter heading 25.30. The main issue was whether "Ground Natural Calcium Carbonate" should be classified under chapter heading 25309090 as claimed by the appellant or under chapter heading 28365000 as claimed by the Revenue.

Issue 1 Analysis:

The Tribunal considered the test report of the product to determine its classification. Samples were tested at a Natural Physical Laboratory and the Chemical Examiner, Central Revenue Control Laboratory, New Delhi. The test report indicated that the product did not qualify as Precipitated Calcium Carbonate as per IS 8167/1978. The test results showed significant differences between the product in question and Precipitated Calcium Carbonate. Referring to a previous decision, the Tribunal held that the product "Ground Natural Calcium Carbonate" should be classified under chapter heading 25.30 of Central Excise Tariff Act, 1985. The Tribunal emphasized that the Revenue failed to produce any corroborative evidence supporting their classification under chapter heading 28.36. Therefore, the impugned order demanding duty under chapter heading 28.36 was set aside, and the appeal was allowed with consequential relief.

Conclusion:

The Tribunal ruled in favor of the appellant, holding that "Ground Natural Calcium Carbonate" should be classified under chapter heading 25.30 of Central Excise Tariff Act, 1985. The decision was based on the test report indicating the product's differences from Precipitated Calcium Carbonate and the lack of supporting evidence from the Revenue for their classification.