9911796707
TMI Blog1998 (11) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the appellants filed declaration on 1-5-1991 under Notification 11/83 (N.T.) for exemption from licensing control, claiming full exemption from payment of duty under Notification No. 23/55, dated 29-4-1955 for their product `Precipitated Barium Sulphate (Blanc Fixe)'. On scrutiny of this declaration, it was considered that they were not entitled for the exemption under the Notification as it was meant only for `Barytes' and not for precipitated barium sulphate (blanc fixe). On that premises a show cause notice issued to the appellant demanding duty for the period 1-10-1986 to 31-3-1991 under the proviso to Section 11A(1) of the Central Excises and Salt Act, 1944 on the ground that they had suppressed the fact that the product is not naturally occurring Barium Sulphate (Barytes) and wrongly claimed exemption under the said notification by classifying the product under Chapter 32 of the Schedule to the Central Excise Tariff Act, 1985. Therefore, 9,300 kgs. of blanc fixe were also seized on the same ground and it was proposed as to why they should not be imposed a penalty of fine and duty recovered. It was contended by the appellants that the issue is no longer res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claration as there was no suppression or misdeclaration, therefore the larger period is not invokable and hence duty cannot be levied and imposed a penalty of Rs. 2 lakhs. 3. We have heard both sides in this matter. Ld. Counsel takes us through the grounds of appeal and all the judgments and also the impugned order. He submits that the order is a non-speaking. Ld. Collector has deliberately stated that the party had not produced the full text of the Board's letter while in fact the same has been produced. It was also contended that it was the duty of the Collector to have obtained the said circular and should have been verified the facts. He also submitted that there is no reason to have differed with the judgments and the ISI Specification besides the other material which was produced to show the Barium Sulphate and Precipitated Barium Sulphate (Blanc Fixe) is one and the same. 4. Ld. DR reiterates the departmental findings. 5. After hearing both sides, the Bench after considering the material on record set aside the impugned order and allowed the appeal by pronouncement the operative portion in the Open Court. The notification grants exemption to Minerals, emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the oil absorption is 14.16. The Encyclopedia of Chemical Technology Vol. 3 deals with Barium Silicate at page 473. At page 475 there is a description pertaining to Precipitated Barium Sulfate, the same is noted herein below : "Precipitated Barium Sulfate - For some purposes, natural barite is not a satisfactory form of barium sulfate, and precipitated barium sulfate is used instead". When precipitated directly for use as a pigment, barium sulfate is known as blanc fixe. When co-precipitated with zinc sulfide, the resulting pigment is called lithopon. When made for medical purposes or when precipitated and used wet to form photo graphic paper, the chemical name is used. Blanc fixe is made by mixing aqueous solutions of barium sulfide and sodium sulfate under controlled conditions in order to produce a precipitate of uniform particles of pigmentary fineness. BaS + Na2SO4 BaSO4 + Na2S The sodium sulfide by-product may be recovered and sold. Formerly an important pigment, blanc fixe has lost ground as a filler to calcium carbonate and clay, and to bleached barite in uses where weight is important. The industry has also been plagued by pollution problems, and at present little ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification and Board's circular including the technical literature and the judgments cited. The ld. Collector has not appreciated the case in the right perspective and has not applied his mind without which he has passed an order of confiscation and imposed penalty which is totally unsustainable. There is no justification for imposing penalty or fine as there was no violation of any rule or law. 6. In that view of the matter, the impugned order is set aside and appeal allowed. 7. [Assenting Order per : S.K. Bhatnagar, Vice President]. - It is observed that the basic issue involved in this case is as to whether the product `Precipitated Barium Sulphate' `(Blanc Fixe)' is eligible for exemption under Notification No. 23/55. This notification covers, inter-alia, Barytes. The department has considered Blanc Fixe and Barytes as two distinct commodities and the adjudicating authority has not allowed the benefit to the appellants on the ground that `Blanc Fixe' is not covered by the notification; whereas the appellants have pleaded that since `Barytes' (which is naturally occurring barium sulphate) is covered `Blanc Fixe' (which is nothing but precipitated barium sulphate) shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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