Imported white cement reclassified under T.I. 23(1) of CESA schedule

The Tribunal allowed the appeal, setting aside the impugned order and granting consequential relief to the appellant. The imported white cement was classified under T.I. 23(1) of the erstwhile First Schedule of the CESA.

---

---

Issues Involved:
1. Classification of imported white cement under the appropriate Tariff Item (T.I.) of the erstwhile Central Excise Tariff (CET).
2. Whether white cement can be classified under T.I. 23(1) as ordinary portland cement.

Detailed Analysis:

1. Classification of Imported White Cement:
The appellant, a proprietary firm, imported 2500 MT of white cement from South Korea. The consignment arrived at Bombay Port on 14.5.84. The appellant sought classification under T.I. 23(1) of the erstwhile CET for the purpose of additional customs duty, which was rejected by the Assistant Collector, who classified it under T.I. 23(2). This decision was upheld by the Collector of Customs (Appeals), leading to the present appeal.

2. Whether White Cement Can Be Classified Under T.I. 23(1):
The appellant argued that T.I. 23(1) is inclusive and covers all varieties conforming to the specifications laid down for ordinary portland cement as per ISI 269-76. The appellant contended that the imported white cement, meeting these specifications, should not be excluded solely based on its color. The test report confirmed that the imported cement met the specifications of ordinary portland cement.

The respondent countered that white cement is a different product with distinct use, character, and composition compared to grey portland cement. They argued that T.I. 23(1) should only include varieties equivalent to ordinary portland cement.

To resolve this, the Tribunal examined the nature of T.I. 23, which includes various types of cement such as grey portland cement, masonry cement, rapid hardening cement, low heat cement, and waterproof (hydrophobic) cement. The chemical and physical requirements for ordinary portland cement were outlined, with specific standards for chemical composition and physical properties. The Tribunal also reviewed the standards for white portland cement, noting that it has similar chemical requirements to ordinary portland cement, except for a lower maximum iron oxide content and no requirement for loss on ignition.

The department's test results for the imported white cement showed compliance with the chemical and physical specifications for ordinary portland cement. The appellant argued that the inclusive definition of T.I. 23(1) should encompass white cement as it meets the necessary specifications.

The Tribunal considered the use of white cement, noting that it is generally for non-structural purposes and has a different application compared to ordinary portland cement. However, they emphasized that the classification should be based on the specifications rather than the use.

The Tribunal cited several legal precedents supporting the inclusive interpretation of tariff items and concluded that the imported white cement, meeting the specifications of ordinary portland cement, should be classified under T.I. 23(1). They dismissed the argument that the different use of white cement should affect its classification.

Conclusion:
The Tribunal allowed the appeal, setting aside the impugned order and granting consequential relief to the appellant. The imported white cement was classified under T.I. 23(1) of the erstwhile First Schedule of the CESA.

---