9911796707
TMI Blog1992 (2) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroduction of the new Central Excise Tariff Act, 1985 the appellants filed one Classification List No. Nil dated 4-5-1986 for their products under Chapter 32. On scrutiny of the Classification List, it was observed that the appellants has classified Ready mixed paints under two different headings, viz. under 3208.90 and 3213.00. Paints packed in more than 200 ml., 100 ml. and 50 ml. containers were classified under Heading 3213.00 as signboard painters colours/paints. On receipt of the Classification List, it appeared to the Department that the Classification of ready mixed paints in small packings under Heading 3213 as signboard painters colours/paints was not in order and consequently, a Show Cause Notice was issued to the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also referred to the BTN explanatory notes and stated that oil paints are included under Heading 3213 and the paints manufactured by the appellants are only oil paints. In the absence of any definition for signboard painters colours, either in the Tariff Act or in the Chapter Notes, the test to be applied for classification would be as to how it is understood in the common parlance. He submitted that, the Collector (Appeals) erred in rejecting the claim of the appellants for classification of the subject products under sub-heading 3213 on the ground that the appellants do not indicate on the smaller tins that these are signboard painters colours. He also submitted that the literature and details contained in the advertisements of a prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nboard painters, is an illogical argument and is not acceptable to me. The paints can be used not only by signboard painters, but also by other users for different purposes. Once the paints goes to the market, one cannot say whether it is used by signboard painters or others. Further, some paints packed in larger containers can also be used by signboard painters, where they are required to paint larger areas. Similarly, the paints packed in smaller containers can also be used by other users for various purposes. Therefore, the product absolutely fails to satisfy the first condition, viz. it does not qualify to be called as signboard painters paints for the reasons stated above. The assessee has referred to the BTN explanatory notes and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty only limits the quantity of use. Moreover, the modes of packing mentioned in the tariff not only help the users for effective utilisation, but also reduce the cost of the product, so as to make it available to the common users, viz. students and artists. Viewed from this point of view also, the metal tins can never be equated with that of tubes, tablets, jars or bottles. Ready mixed paints needs to be packed in containers like tins and it is never packed in tubes, tablets, jars or bottles. Thus, from the foregoing observations, I have clearly established that the ready mixed paints are only classified under Chapter 3208.90 irrespective of the mode of packing and not as signboard painters colour, as contended by the assessee." 5. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel for the appellants was that literature and details contained in the advertisements of a product are not the determining factors for classification of the goods. What is relevant is the capability of the product being used for a particular end-use and since the product in question when sold in small containers is being actually used or meant to be used by signboard painters it should be classified under 3213.00. We do not find any force in the arguments advanced. For, in the case of Dunlop India Ltd. Madras Rubber Factory Ltd. v. Union of India, supra, the Apex Court has held that when there is no reference to the use or adaptation of the article, the basis of end-use for classification under a Tariff entry is absolutely irrelev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants consequent on the introduction of the new Central Excise Tariff Act, 1985. Even otherwise, it is settled law that there is no estoppel in law in such matter. The Department may change the classification and the only condition is that before doing so the affected party should be given an opportunity to defend. In the instant case, admittedly Show Cause Notice was issued and after usual adjudication proceedings, the product in question was classified as aforesaid. 7. In the light of the foregoing discussion and agreeing with the findings recorded by the authorities below, we do not find any substance in the arguments raised by the learned counsel. 8. In the result the appeal is rejected. - - TaxTMI - TMITax - Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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