9911796707
TMI Blog1998 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... ss involved heating of limestone (calcium carbonate) to convert it into quick lime (calcium oxide) there was manufacture and therefore quick lime is classifiable under Chapter 25 and held that the item manufactured by the appellants was correctly classifiable under Chapter Heading 25.05. However, by the impugned order Collector (Appeals), Chandigarh, set aside the order-in-original and held in favour of the present respondents. 4. In the Departmental appeal against the Collector (Appeals) order it has been contended that in Heading 25.05 the sub-heading also included lime. The Department contended that before 1-3-1990, 25.05 included lime. Though previously it was included in the Chapter Heading 25.05.00, after 1-3-1990 it has been included in the sub-heading 2505.60. The Department argued that the purpose of Chapter Notes and Section Notes are for facilitating classification. This cannot take out an item from the purview of a heading when it is specifically mentioned therein. Department has referred to the Chambers Dictionary of Science and Technology wherein `lime' has been defined as "a substance produced by heating limestone to 825oC or more as a result of which carbonic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aipur, following the decision in Madhusudan Ceramics (Order No. 1252/90-C, dated 13-11-1990) [1991 (53) E.L.T. 90 (T)] held that quick lime is covered by Note 2 to Chapter 25 and is, therefore, not dutiable. We see no reason to differ from the ratio of the said decisions. 7. The Departmental appeal, therefore, fails and is rejected. Sd/- (A.C.C. Unni) Member (J) 8. [Contra per : S.K. Bhatnagar, Vice President]. - With due respects to Hon'ble Member (Judicial), my views and orders in the matter are as follows. 9. I observe that the entire controversy arises from the fact that lime was specifically covered by Heading 25.05 being included in the main heading prior to 1989-90 and not only mentioned in the main Heading 25.05 but also covered by sub-heading 2505.60 in 1991-92. In fact, in the later case, the sub-heading covered quick lime, slaked lime and hydraulic lime, other than calcium oxide and hydroxide of Heading No. 28.25 and the controversy has arisen regarding the excisability of these products inspite of being mentioned in the tariff in view of Chapter Note (2) as it stood during the relevant period. This Chapter note reads as follows :- "Heading No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Properties : Soft, white crystalline powder with alkaline, slightly bitter taste. Derivation : Action of water on calcium oxide." Uses : Mortar; plasters; cements; calcium salts; causticizing soda; depilatory; unhairing of hides; white-wash; Soil conditioner; ammonia recovery in gas manufacture; disinfectant; water softening; purification of sugar juices; accelerator for low-grade rubber compounds; petroche- micals; food additive, as buffer and neutralizing agent; shell forming agent (poultry)." 5. "Lime, hydrated. See Calcium Hydroxide." 6. "Lime, hydraulic. A variety of calcined limestone, which, when pulverized, absorbs water without swelling or heating and gives a cement that hardens under water." 7. "Lime, unslaked. See Calcium oxide." 8. "Calcium carbonate. CaCO3. Properties : White powder or colorless crystals, odorless, tasteless; sp. gr. 2.7-2.95; decomposes at 825oC; non-combustible; nontoxic; very slightly soluble in water (a few parts per million); soluble in acids with evolution of carbon dioxide. Occurrence : Calcium carbonate is one of the most stable, common, and widely dipersed materials. It occurs in nature as aragonite, oyster shells ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw material called limestone which was being roasted and not the product namely, the lime and therefore, Chapter Note (2) did not come in the way of treating lime as excisable and once it was specifically covered by Heading 25.05, it remained excisable. 19. This also explains the post 1990 expansion of the entry to cover sub-heading explicitly quick lime, slaked lime and hydraulic lime because in the market, they are different commodities. Hydraulic lime is produced by pulverising calcined limestone. Therefore, it is the raw material which is being pulverised and not the product. Hence, Chapter Note (2) does not come in the way of treating this sub-heading as covering items which were covered specifically by the Entry 25.05 or one of its sub-headings. Since, there is no dispute that these goods are being marketed after being manufactured as above, therefore, in my opinion, they are excisable. 20. With due respects, therefore, I differ from the opinion expressed in the case law cited above including Luxmi Chemicals v. CCE, Jaipur. 21. Since however, the orders which have been cited have been followed by other Benches, I consider it more appropriate to refer the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te 2 did not come in the way of treating lime as excisable as it is specifically cover- ed by Heading 25.05 and as the roasting was done on limestone and not the product lime. 24. When the matter came up for hearing, Shri Lakhinder Singh, learned Joint Chief Departmental Representative appeared for the appellant Collector and Shri A.C. Jain, learned Advocate appeared for the respondent. While Shri Lakhinder Singh supported the order proposed by the Vice President, Shri Jain stated that the matter stands covered by the Supreme Court's decision in respondent's own case, in respect of the same product which related to an earlier period. This has been reported in 1998 (99) E.L.T. 197. He pleaded that, following the said decision, the Department's appeal be dismissed, as proposed by the Judicial Member. 25. I have been taken note of the submissions. I have perused the record and the decision cited by the learned Counsel and the ones referred to in the order proposed by the Judicial Member. In the case decided by the Supreme Court which was cited by the respondent's Counsel, the matter related to the same issue of dutiability of quick lime and hydrated lime. The Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
