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TMI Blog2015 (9) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... exclusion of calcination would not apply in respect of those products where the context otherwise includes calcination. Chapter Heading 25.05 which has already been reproduced above mentions under Entry 2505.10 "Kaolin and other kaolinic clays, whether or not calcined". It is not in dispute that the china clay otherwise is known as Kaolin as well and the process of Kaolin is same as that of china clay. Here the Kaolin is included under Entry 2505.10, i.e., under Chapter Heading 25.05, even when it is calcined. Therefore, it follows from the above that the context here requires such a product to remain included under Chapter 25.05 even when it is calcined. - merely because the product of assessee, i.e., China Clay is calcined, it would n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the show cause notice is that the China Clay manufactured and marketed by the assessee had to undergo a number of processes, either physical or with use of chemicals like sulfuric acid and magnetic separators for removal of foreign materials and the assessee had also introduced calcination process according to which the temperature was raised from 700 degree centigrade to 1200 degree centigrade to the cake lumps/ powder of China Clay. The emphasis, thus, was on the calcination of China Clay, which according to the Commissioner, made it a different product. For this purpose, a reference was made to Note 2 of Chapter Heading 25 which reads as under: - 2. Except where their context otherwise requires, heading Nos. 25.01, 25.03 and 25.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t calcined; mullite; chamotte or dinas earths. 38.24 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included. Thus, the Show Cause Notice proceeded on the basis that as China Clay was calcined, it could not be included under Chapter Heading 25.05 and since Chapter Heading 38.24 mentions about some specified product including those consisting of mixture of natural products, it would fall under Chapter Heading 38.24. The assessee herein submitted its reply to the aforesaid Show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 25 which dealt with these very products contained different Head Note 2. This provision which remained in operation from 1986-1990 is - 2. Heading Nos. 25.01, 25.03 and 25.05 cover only products which have been washed (even with chemical substances, eliminating the impurities without changing the structure of the product), crushed, ground, powdered, levigated, sifted, screened, or concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation), but not products that have been roasted, calcined or obtained by mixing. In the aforesaid Note, after mentioning the products, there is again an exclusion clause which excludes the products that have been roasted, calcined or obtai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure of the product), crushed, ground, powdered, levigated, sifted, screened, concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation), but not products which have been roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading. Likewise, Chapter Heading 25.07 of HSN Notes which deals with Kaolin and other Kaolinic clays specifically mentions whether or not calcined as is clear from the reading of the same and we reproduce it hereunder: - 25.07 - Kaolin and other Kaolinic Clays, whether or nor calcined. This heading covers kaolin and other kaolinic clays, the main constituents of which are kaolin minerals such as kaoli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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