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TMI Blog1997 (7) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... l Nos. E-1874/89C E-1613/89D have been filed against the Orders-in-Appeal confirming demands of duties on the said products as a result of classification of the same. 1.2 The issue involved in all the four appeals is the classification of the products - Calcined Lime commonly known as Burnt Lime and Calcined Dolomite, respectively. 1.3 The appellants are manufacturing Burnt Lime and Burnt Dolomite for captive consumption within the factory of production for the manufacture of its final products. 1.4 On the introduction of Central Excise Tariff Act, 1985, the appellants had submitted a Classification List with their jurisdictional Central Excise Officers classifying the said products under Tariff heading 2804.90. Show cause notices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he authorities below is being against the said Chapter Note also being against the decided cases as referred to above, are liable to be set aside. 2.1 Shri S.N. Ghosh, learned JDR appearing on behalf of the respondents submits that no doubt, Chapter Note 2 to Chapter 25 lays down that Calcined Products in respect of Heading 2505.00 would not be covered by the said Chapter. Nevertheless, he submits that Tariff Heading 2505.00 specifically mentions Lime under the description of the goods covered by the said Heading. He contends that Lime is a Burnt Product and mere mention of the Lime against the sub-heading 2505.00 is sufficient to hold that the said products fall under Chapter 25 as the word - Lime - does not refer to any new item but B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held to be classifiable under Chapter 25 after the amendment of Chapter Note 2 effective from 20-3-1990. In the circumstances, he pleads that the said amendment to Chapter Note 2 should be considered as clarificatory in nature and as such by giving the retrospective effect to the same, the goods in question should be made classifiable under Chapter 25. Further, in support of submission, he relies upon Chapter Note 1(b) to Chapter 26 which is to the effect that Chapter 26 will not cover magnesite whether or not calcined (Chapter 25). From this, he concludes that Calcined Magnesite has been specifically excluded from Chapter 26 and has been mentioned as being classifiable under Chapter 25. He also relies upon the HSN Explanatory Note where Q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plasters with a basis of calcium sulphate, whether or not coloured, but not including plasters specially prepared for use in dentistry. The Chapter Note after its amendment effective from 20-3-1990 states as under :- 2. Except where their context otherwise requires, Heading Nos. 25.01, 25.03 and 25.05 cover only .......... 3.2 We find that the period involved in these cases is prior to the amendment of Chapter Note 2 to Chapter 25. We also take note that the issue has been decided by the Tribunal in the two earlier cases holding that the Calcined Lime and Dolomite would fall outside the purview of Chapter 25 because of Chapter Note 2 to the said Chapter. Learned JDR, Shri Ghosh has argued that since lime by itself means Burnt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any reason to differ from the earlier judgment of the Tribunal. 3.3 However, we would like to deal with the other submission of the learned JDR. 3.4 The said Chapter Note 2 was amended with effect from 20-3-1990 and the wordings - Except where their context otherwise requires - were introduced at the start of the said Chapter. Taking into consideration the said amendment, the Tribunal in the case of Birla Jute Industries v. Collector of Central Excise, Raipur reported in 1995 (75) E.L.T. 561 (Tribunal), has held that the Burnt Lime and Dolomite would fall under Chapter 25 with effect from 20-3-1990 i.e. from the date of amendment of the said entry. Reliance by the learned JDR on the said decision is not relevant inasmuch as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 therein. However, he is fair enough to concede that the Chapter Note was not analogous to the Chapter Note of HSN and which was brought subsequently at the same platform by the amendment with effect from 20-3-1990. It does not require any reasoning to say that as per the settled law, the entries in HSN Explanatory Notes are only to be taken as of pursuasive value and as an aid for interpreting the headings. But the same cannot remain the deciding factor for construing the heading of a tariff especially when the Chapter Note prior to its amendment was not on the same footing as that of Chapter Note of HSN. It is almost a settled law that headings in Tariff have to be interpreted in the light of the Section and Chapter Notes vide the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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