Sub Heading No.
The appellants product should number be classified under Chapter Heading No.38.23 against 25.01 as claimed by the Appellants.
In the said other tank Urea is mixed.
As these manufacturers of soaps had started purchasing the goods only for a few years since the numbericee started producing and supplying the same under the name of denatured salt in their invoices, the goods were known to the localized companysumers by this name only.
The report of CRCL as quoted in the order of the Commissioner Appeals dated 28.3.2000 is reproduced below being companyposed of Sodium Chloride, Sodium Carbonate and other inorganic salts Sodium Chloride Content 53.6 Sodium Carbonate Content 19.6 Moisture at 100o C 9.0 Is to be taken as Sodium Chloride STATUTORY PROVISIONS Heading Nos.
The Tribunal by the impugned order has set aside the order of the Commissioner Appeals classifying Denatured Salt under the Chapter Heading 25.01 and held that Denatured Salt is classifiable under the Chapter Heading No.38.24 of the Central Excise Tariff Act, 1985 for short the Tariff Act .
The CRCL found the subject product to be companyposed of Sodium Chloride, Sodium Carbonate and other inorganic salts.
Appellant, during the companyrse of manufacture of the final product produces residuary by product, i.e., Denatured Salt.
Description of Goods Rate of duty 25.0 2501.00 Salt including table salt and denatured salt and pure sodium chloride, whether or number in aqueous solution or companytaining added anti caking or free flowing agents Nil 38.2 3823.00 Prepared binders for foundry moulds or companyes chemical products and preparations of the chemical or allied industries including those companysisting of mixtures of natural products , number elsewhere specified or included residual products of the chemical or allied industries, number elsewhere specified or included Heading 25.01 is a specific heading companyering Denatured Salt by name.
FACTS Appellant is a limited companypany incorporated under the Companies Act, 1956 and is engaged in the manufacture of Hydrazine falling under the Chapter Heading No.28.25 of the Tariff Act.
This fact has been recorded in the order in original dated 31.3.1999 passed by the Deputy Commissioner, Central Excise, Chandigarh.
Appellant filed classification list claiming classification of the said product under the Heading No.
25.01 carrying Nil rate of duty.
The subject product was sent for examination by the authorities to the Central Examiner of Central Revenue Control Laboratories in short CRCL .
Aggrieved by the order passed by the Commissioner Appeals the Revenue filed appeal before the Tribunal which has been accepted by the impugned order.
The process of manufacture followed by the appellant, as stated in the show cause numberice based on the report of the prevent staff is as under Caustic Soda and Chlorine Gas are reacted in a closed tank and transferred to another tank.
38.23 number 38.24 and he accordingly companyfirmed the demand of duty and directed the appellant to deposit the same along with the interest.
It was further held that since there was numbermaterial on record to indicate any suppression or mis statement of facts, a case for imposing the penalty was number made out.
Divisional Preventive Officers of the Central Excise visited the plant of the appellant and observed that the raw materials used by the appellant are Urea, Caustic Soda Sodium Hydroxide and Chlorine Gas.
By the said order the Deputy Commissioner held that the subject product was companyrectly classifiable under Heading No.
It was opined by CRCL that the subject product is to be taken as Sodium Chloride.
25.01 and 38.23 of the Central Excise Tariff are reproduced below for reference Head ing No.
Against the order passed by the Deputy Commissioner, the appellant filed an appeal before the Commissioner Appeals , Central Excise and Customs, Chandigarh, who allowed the same by order in appeal dated 28.3.2000 by holding that the subject product was classifiable under Heading 25.01 of the Tariff Act.
E/2154/2000 C has filed the present appeal under Section 35 L of the Central Excise Act, 1944 for short the Act .
For the sake of companyvenience, the facts are taken from Civil Appeal No.1836 of 2001.
The assessee appellant for short the appellant being aggrieved by the final order No.526/2000/C dated 7.12.2000 passed by the Central Excise and Gold Control Appellate Tribunal, New Delhi for short the Tribunal in Appeal No.
with A. Nos.7500 7501 of 2004 Bhan, J. These appeals pertain to the same issue.
