9911796707
TMI Blog2014 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... the final product viz. Lost Circulation Control Additives (LCCA for short) are classified by the appellant under CETH No.4701.00 attracting Nil rate of duty, while it is the case of Revenue that the said product gets classified under CETH 3824. The Revenue authorities came to the conclusion that the said product would merit classification under CETH 3824 on the ground that the purchase order of ONGC for LCCA was obtained and sample was sent for analysis to Central Excise Regional Laboratory at Vadodara which opined that the product is a chemical product and it was opined by the Deputy Chief Chemist that the said product would get classified under Chapter Heading other than 47.01. Based upon such opinion of chemical examiner, show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is other than the product classified in Chapter 47.01 and 47.06. It is his submission that as per the test report and expert opinion, the samples of LCCA preparation obtained by mixing of cellulose and starch and is not a pulp of fibre nor it is derived from record paper/paper board other fibre cellulosic material. It is his submission that LCCA is a preparation based on modified cellulose and starch and is used for bridging, suspending and thickening effect. It is his submission that the impugned orders may be quashed and set aside. 4. Ld.Counsel appearing on behalf of the respondents, would draw our attention to the detailed order passed by the first appellate authority. It is his submission that the issue is no more res-integra in as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As per these Notes, the pulp of Chapter 47 consists essentially of Cellulose fibres obtained from various vegetable materials, or from waste textiles of vegetable origin. As per the HSN Notes, other materials which may be used for making pulp include Cotton Linters, rags of cotton, linen or hemp and other textile wastes such as old ropes, straw, esparto, flax, ramie, jute, hemp, sisal, bagasse, bamboo and various other grasses and reeds, waste and scrap of paper etc. Further as per HSN Notes the pulp can be in the form of powder. Therefore, the ingredients are polysaccharides grades viz. cotton rags, cellulosic substances, cellulosic fibres, rice husk, wood dust etc. and or polysaccharides types viz. white sheet powder, paper powder, pulp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classifiable under Chapter 47 as against Chapter 38. 14. The Assistant Commissioner has in his order held that the appellants product which is purchased by ONGC is added to mud during oil drilling to increase the viscosity of the mud. He has proceeded on the basis that since the product increases the viscosity of the mud, it has chemical properties. The said conclusion of the Assistant Commissioner is not correct. The property of increasing viscosity is a mere physical property which does not involve any chemical process or reaction. It cannot be termed as a chemical property. The presence of cellulose fibres and similar matter thickens the mud when the product is added to it. The mere fact that the product has thickening property would n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as has been recorded. In our view, on a question of fact which indicate that the product LCCA is a product derived from cellulosic fibre, we find that the classification of the said product under Chapter 47 as held by first appellate authority is a correct view. 10. We also find that the first appellate authority has held that the Assistant Commissioner has relied upon the opinion of the chemical examiner which indicates that the products are not classifiable under Chapter 47.01. In our view, the first appellate authority was correct in recording that the opinion of the chemical examiner could be restricted to the analysis of the product in question and hence he cannot opine on the classification of the product. Reliance placed by the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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