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TMI Blog1995 (11) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... ster batch. The Classification Lists dated 23-3-1993 and 8-4-1993 filed by them, classifying PVC Compound and PVC Master batch under sub-headings 3904.21/22 and 3204.19 respectively were approved by Superintendent. The Department filed an appeal before the Collector (Appeals) pleading that the product declared by the assessees as PVC Master batch was in fact PVC Compound classifiable under sub-heading 3904.21/22 since the colour concentrate content of the said goods was only 2% as against the requirement of 10% or more of colour content for being classified as Master batch. By the impugned order the Collector (Appeals) rejected the Department s appeal on the ground that the product in question satisfied all the criteria laid down for classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssees claimed that PVC Master batch having colour content of 3 to 5% was a specialized product, having a higher price than PVC Compound, was widely used for achieving proper dispersal of colour in PVC Compound. However, the assessee s contentions were rejected by the Collector, who by the impugned order confirmed the demand on the ground that the colour content of the disputed product being far less than the minimum requirement of 10% and its ingredients being similar to those of PVC Compound, it could not be treated as PVC Master batch. By the said order, the Collector also imposed a penalty of Rs. 40,000/- on the appellants. 3. We have examined the relevant records and heard Shri Sanjeev Sachdeva, learned SDR on behalf of the Revenue an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stomers were actually using the product in question as Master batch for imparting colour to PVC Compound. 5. On perusal of the order passed by the Collector, we find that he has gone by the criteria that Master batch should contain more than 10% colourant without indicating any basis or authority for the same. As observed by us earlier, even according to the Board s Circular F. No. 93/44/87-CX. 3, dated 17-9-1987 issued on the basis of the advice tendered by the Chief Chemist, the possibility of Master batch having less than 10% colourant could not be ruled out. Under these circumstances, it was incumbent upon the concerned adjudicating authorities to arrive at their findings after examining the nature and use of the disputed product and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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