Cleaning powder classification under Chapter 34 defeated scouring powder exemption claim under the excise notification.

Cleaning powder was classified under sub-heading 3402.90 rather than Chapter Heading 34.05, because the chemical report, the director's statement, and the product's marketing and invoice descriptions all supported treatment as cleaning powder. The mere observation that the sample had scouring powder characteristics was insufficient, as it did not satisfy Note 2 to Chapter 34. On that basis, the exemption meant for scouring powder under Notification No. 222/77-C.E. was unavailable, and the duty demand remained confirmed.

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Issues: Whether the cleaning powder manufactured by the appellant was classifiable under sub-heading 3402.90 as cleaning powder or under Chapter Heading 34.05 as scouring powder, and whether it was entitled to exemption under Notification No. 222/77-C.E. dated 15-7-77.

Analysis: The goods were examined against the report of the Chemical Examiner, the statement of the director, and the manner in which the product was marketed and described in invoices. The report noted the presence of constituents consistent with cleaning powder, and the observation that the sample had the characteristics of scouring powder was held insufficient because it did not satisfy the conditions in Note 2 to Chapter 34. The admitted description of the goods as cleaning powder also supported the classification adopted by the lower authorities. Since the product was found to be cleaning powder under sub-heading 3402.90, the exemption claimed for scouring powder did not apply.

Conclusion: The goods were correctly classified as cleaning powder under sub-heading 3402.90, the duty demand was rightly confirmed, and the claim for exemption failed. The appeal was against the assessee.

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