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TMI Blog1985 (4) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... 5)29/83/2990 to the appellants, alleging inter alia that they had contravened the provisions of Rules 174, 9, 52A, 226, 173B, 173C, 173F and 173G of Central Excise Rules, 1944, inasmuch as they had manufactured and removed a variety of cement known as Plastwel falling under Tariff Item No. 23(2)-C.E.T. without having proper licence in form L-4 and without fulfilling other formalities under the various provisions of the Central Excise Law. It was alleged in the notice that the party had removed 232 bags each containing 50 kg. of plastwel (cement) during the period from 13-8-1982 to 25-3-1983 valued at ₹ 68,059.08 involving Central Excise duty amounting to ₹ 29,945.99 by resorting to mis-statement. 2. The appellants in thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the product plastwel manufactured by the appellants should be treated as a variety of cement and, therefore, should fall under Central Excise Tariff Item No. 23(2) and not under Item 68. He confirmed the demand of excise duty amounting to ₹ 29,945.99 under Rule 9(1) of the Central Excise Rules, 1944. A penalty of ₹ 500/- was also imposed under Rule 173-Q(1) of the Central Excise Rules, 1944. 4. Being aggrieved by the said order of the Deputy Collector, the appellants filed an appeal before the Collector of Central Excise, Calcutta, who by his Order-in-Appeal No. 286/BR/84 dated 29-5-1984 confirmed the findings of the Deputy Collector that the product manufactured by the appellants is a cement falling under sub-item (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department and gone through the record. 7. According to Shri Sinha, the learned Consultant, the product of the appellants is made of 80% granulated slags, 3% fly ash, 15% lime and 2% gypsum. This is grounded in a Ball Mill and packed in bags and marketed. The product is used as a substitute for cement. According to Shri Sinha, cement as known and recognised in the trade is always made first by fusing basic raw materials into clinkers. According to Shri Sinha, gypsum is the only material which they are using in the manufacture of their product, which is also essential for the manufacture of cement. Blast furnace slag and fly ash, are not essential materials in the manufacture of cement nor they are used as raw materials in the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cement should be portland. There are many varieties of cement. Supersulfated cement contains about 80% slag interground with 15% gypsum or anhydrite and 5% portland cement clinker. He pointed out that in the grounds of appeal in para 2, the appellants have themselves admitted that the materials which they use in the manufacture of their product are also used in the manufacture of cement. Gypsum is one of the most essential material in cement as also in the product manufactured by the appellants. According to Shri Khanna, this product contains the principal ingredients of cement. Shri Khanna submitted that it is difficult to accept the argument of Shri Sinha that simply because it does not go through the clinkering stage and does not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ingredient. No doubt, it is true that for the manufacture of portland cement as is commonly understood clinkering stage is a normal stage but there are several varieties of cement which have been mentioned in Encyclopaedia of Chemical Technology by Kirk-Othmer, Vol. 5 at page 187 where clinkering is not required. Calcium Aluminate Cements, Supersulfated Cement are non-portland cements and no clinking process is required for the manufacture of these varieties of cement. Merely because the product manufactured by the appellants does not go through clinkering stage, it cannot be said that this product cannot be a variety of cement. As per own admission of the appellants, this product is used for laying bricks and plastering the walls. Its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same no clinkering process is essential. 11. Under these circumstances, in view of the report of the Chemical Examiner and the fact that this product manufactured by the appellants contains those very ingredients which are also used in the manufacture of cement and that it is used for laying bricks and plastering them, it is a variety of cement, i.e., Non-portland cement as mentioned in Encyclopaedia of Chemical Technology by Kirk-Othmer. 12. The authority below has correctly classified this product under Tariff Item 23(2) of the Central Excise Tariff. We confirm the order of the authority below and reject this appeal. 13. Regarding penalty, though the original authority had imposed a penalty of ₹ 500 on the appellants b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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