9911796707
TMI Blog2005 (1) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... tical to that being manufactured by Camlin Ltd. As one of the major manufacturers of crayon in this country was importing this material, the Department had clearly established the marketability of this material. It is settled law that for a good to be marketable it is not necessary that there must be actual instances of sale by the assessee. Marketability is essentially a question of fact to be decided on facts of each case and once it is shown that a product has actually been bought, marketability gets established. Having considered the rival submissions we are unable to accept the submission that this compound is to be classified under tariff Item No. 96.09. Chapter 96 deals with manufactured articles. The HSN Explanatory Note also sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the product imported by Luxor is not the same product but a completely different product. 3.At this stage it, therefore, becomes necessary to see what is the product of Camlin Ltd. and what was the product imported by Luxor. It is an admitted position that the intermediate product is manufactured by Camlin Ltd. by thoroughly mixing in a jacket of vessel plastic powder, paraffin wax hard oil, colour pigments and dispersing agents and plasticisers. These are mixed by heating the same and the mixture is then cooled and cut into small irregular shapes. The product of the Respondent which comes into existence is called as "crayplas compound". 4.What was imported by Luxor Pen Co. is set out in the case of Luxor Pen Company v. Collector of Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each case and once it is shown that a product has actually been bought, marketability gets established. 6.The second question is regarding classification. The Department claims that the product has to be classified under Chapter Heading 32.04 which reads as follows : Heading No. Sub-heading No. Description of goods Rate of duty 32.04 Synthetic organic colouring matter, whether or not chemically defined; preparations based on synthetic organic colouring matter as specified in Note 2 to this Chapter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined. - Pigments and preparations based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in a rigid sheath 9609.20 - Pencil leads, black or coloured 9609.90 - Other" 9. It is submitted that the test analysis shows that the intermediate compound is essentially the same and that it has all the characteristics of a crayon. Reliance is placed on Rules for the Interpretation of the Schedule to the Central Excise Tariff wherein Rule 2(a) reads as follows :- "2(a) Any reference in a heading to goods shall be taken to include a reference to those goods incomplete or unfinished, provided that, the incomplete or unfinished goods have the essential character of the complete or finished goods. It shall also be taken to include a reference to those goods complete or finished (or falling to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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