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TMI Blog2015 (10) TMI 1836X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the purity of the burnt lime is 70 to 75% only. Therefore, in view of the Board s Circular as well as HSN Explanatory Note, the product manufactured by the respondent has to be classified under CTH 25.05 only. From the raw materials used, the process employed or the parameters of the resultant product show that the Burnt Lime manufactured by the respondent is not classifiable under CETH 28.25. Hon’ble Supreme Court has already held in the case of Commissioner of Central Excise, Shillong vs. Wood Craft Products Ltd. [1995 (3) TMI 93 - SUPREME COURT OF INDIA] that HSN Explanatory Note can be used as a guide to resolve dispute relating to tariff classification and in this case, HSN Explanatory Notes as well as Board’s Circular clearly s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were initiated against the respondent taking a view that the Burnt Lime manufactured and cleared should not be classified as Calcium Oxide under CETH 2505.00 and the respondent should not be required to discharge the Central Excise duty. Periodical show-cause notices were issued and total Central Excise duty of ₹ 7,02,50,294/- was demanded from the respondent for the goods cleared from May 1995 to May 2004 with interest. 3. The proposal for demand of Central Excise duty and imposition of penalty in the show-cause notices was dropped and the claim of the respondent that the product is classifiable under CETH 2505.00 was accepted in the impugned order. The Revenue is in appeal against this order. 4. Nobody is present on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 1st southzone Tariff-cum-General Conference held at Hyderabad on 23rd and 24th April 1991. The conference observed that Note 2 of Chapter 25 was amended in the Budget of 1990 vide Note No. 106/90 CE dated 16.5.90. As a result of the amendment, the words except where their context otherwise requires were incorporated at the beginning of Note 2 of Chapter 25 this amendment was done with a view to aligning the Note with the corresponding Note in HSN. With the incorporation of the words referred to above, the burnt lime would merit classification under sub-heading No. 2505.60 notwithstanding the fact that the burnt lime is obtained by the process of calcination. The Conference was, therefore, of the view that as there was specific mention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Quicklime (calcium oxide) and slaked lime (calcium Hydroxide) are excluded (heading 25.22). 5.4. The Commissioner has also taken note of the fact that the words except where their context otherwise requires was not there in the Chapter Note prior to 20.3.1990. The Chapter Note after 20.3.1990 reads as under : Except where their context otherwise requires, 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 crystallization), but not produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Calcium Oxide which of 98% purity or more. Admittedly in this case, the purity of the burnt lime is 70 to 75% only. Therefore, in view of the Boards Circular as well as HSN Explanatory Note, the product manufactured by the respondent has to be classified under CTH 25.05 only. 6. From the raw materials used, the process employed or the parameters of the resultant product show that the Burnt Lime manufactured by the respondent is not classifiable under CETH 28.25. Hon ble Supreme Court has already held in the case of Commissioner of Central Excise, Shillong vs. Wood Craft Products Ltd. [1995 (77) E.L.T. 23 (S.C.)] that HSN Explanatory Note can be used as a guide to resolve dispute relating to tariff classification and in this case, HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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