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TMI Blog2017 (9) TMI 1547X X X X Extracts X X X X X X X X Extracts X X X X ..... s a by-product. Appellants were clearing the said by-product on payment of duty at 6.18% classifying it under Central Excise Tariff Heading (CETH) No. 27012090. Department took the view that the said by-product since emerging during the course of manufacture of sponge iron is liable to be classified under sub-heading no. 26190090. Accordingly, two show cause notices were issued to respondent proposing demand of differential duty, along with interest thereof and also imposition of penalties. In adjudication, original authority confirmed the differential duty liability demand in both show cause notices, however, refrained from imposing penalty on the reasoning that matter involved interpretation of law. Appeals filed by the Respondent were al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Tariff Act, 1985, which states as follows: "the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods." 5.2 Only when the classification of the item is not possible by application of Rule 3(a), will the Rule 3(b) reproduced under, come into application: "mixtures, composite goods consisting of different mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be classifiable under 27012090. Discernably, the char-dolachar is a by-product emerging during manufacture of sponge iron, and not a fuel manufactured from coal. 5.6 On the other hand, heading 2619 seeks to cover slag, dross (other than granulated slag), scaling and other waste from the manufacture of iron or steel. There is no dispute that the impugned by-product is emerging during the manufacture of sponge iron. Hence, applying Rule 3(a) of the General Rules of Interpretation CETH 26190090 is the sub-heading which provides the most specific description for the impugned goods and hence that will have to be adopted. This being so, the application of Rule 3(b) of the rules and the reasoning of "essential character" of coal fines by the lo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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