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TMI Blog1989 (10) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was rejected by the Asstt. Collector and the appeal preferred by the appellants was also rejected by the Collr. of Customs (Appeals) vide order dated 13-9-1986. This impugned order has given rise to this appeal. 2. We heard Shri R.S. Bajoria L.A. for the Appellant and Shri A.S. Sunder Rajan, Ld. J.D.R. for the department. 3. It was contended by the appellant before the Collector (Appeals) that the imported material is not liable to duty and that is why not liable to C.V. Duty because it is a product of mining and not manufacture . Now, this question was also under issue in the case of Hyderabad Asbestos Cement Others and UOI -1980 (6) E.L.T. 735 (Del.) and as per submission of the Ld. advocate, the question has been answered against the appellant and in favour of the Revenue and the appellant has taken the matter to the Hon ble Supreme Court where that appeal is pending. So, as far as this appeal is concerned, he does not press that point further and would confine his arguments to another contention. 4. So, now the question that arises for determination in this appeal is whether the material imported by the appellant can be termed as asbestoes fibre and can be held ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in flakes or powder and also to asbestos waste. The heading excluded fibre which has been further processed (carded, dyed, etc.) and finished articles of asbestos." (Heading 68.12) Heading 68.12 defines Fabricated Asbestos as under : Fabricated asbestos fibres; Mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate; Articles of such mixtures or of asbestos (for example, Thread, Woven Fabric, Clothing, Headgear, Footwear, Gaskets), whether or not reinforced, other than goods of heading No. 68.11 or 68.13". This heading covers asbestos fibres further worked than beaten, cleaned, sorted or graded (e.g., carded fibres and dyed fibres). They may be for any purpose (e.g., for spinning, fE.L.T.ing, etc., or for use as filtering, insulating, packing, etc. materials). Crude asbestos fibres or those simply graded according to length, beaten or cleaned are excluded." (Heading 25.24) 6. The appellant has also produced extracts from Import and Export Policy of the Government of India for the period from April, 1985 to March, 1988 and therein at, Appendix 5 is a list of item, import of which is canalised through public sector agencies and therein under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in Chemical Dictionary by G. Hawley and he has also referred to the definition of the said product in a book by J.H. De Bussi. But from this discussion what can be inferred is that the asbestos has fibrous structure but it is something different from fibre . As rightly stressed by Shri Bajoria, L.A., fibre is not a synonym for fibrous. The Collector has noted the contention of the appellant that imported material is required by the appellant as bonding agent in the asbestos cement product. No evidence is adduced by the department to show that bonding can be done only with fibre of asbestos and not with crude asbestos. Admittedly, what is being imported is asbestos raw and it is not the contention of the department that unless it has quality and character of fibre it cannot be used for bonding purposes. 11. We have carefully perused Delhi High Court Judgment. Therein, in para 7, questions that arose for decision, have been stated and Question No. 3 reads as under : Even if duty of excise could not be charged on that quantity of asbestos fibre obtained from the mines will the levy of additional duty of customs under the Customs Tariff Act, 1975 be not sustainable irr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that fibre can be taken away from rock in which it was embedded. So, in that case, the petitioners were, in fact, extracting fibre from asbestos raw. In para 20, there is following discussion: Applying that test to the present case it is not open to doubt that asbestos fibre is a marketable commodity and is known to the market and is saleable as such. It is also not disputed that asbestos rock which is mined by the petitioner is as such not saleable in the market. Great and intensive process is required before the asbestos rock which is mined by the petitioner can be converted, transformed and put into market as asbestos fibre. In para 21, there is following observation : Here excise duty is on asbestos fibre which is known to commercial community as a goods. In the course of arguments, in that case, it was contended by the petitioners that what they take out from the mine was, itself, a finished product and the Hon ble High Court negatived that contention holding it to be semi-finished goods as can be seen from the following excerpt from para 24: It is also significant that the petitioners themselves treated the mined article as a semi-finished goods which had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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