1998 (9) TMI 241 - AT - Central Excise

Tribunal rules against Revenue's appeal on 'Vetiverol Residue' classification

COLLECTOR OF C. EX., BOMBAY Versus EASTERN AEROMATICS (P) LTD.

COLLECTOR OF C. EX., BOMBAY Versus EASTERN AEROMATICS (P) LTD. - 1999 (107) E.L.T. 208 (Tribunal) Issues involved: The classification of the product 'Vetiverol Residue' under sub-heading 2942.00 of the Central Excise Tariff Act or under sub-heading 3301.00 of the CETA.Summary:The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of 'Vetiverol Residue' under specific sub-headings of the Central Excise Tariff Act. The Revenue contended for classification under sub-heading 3301.00, while the lower authorities had classified it under sub-heading 2942.00.When the Respondents did not appear, the Ld. S.D.R. presented that the impugned product was obtained as a residue after distilling vetiverol oil. The Chemical Examiner classified it as a resinoid under sub-heading 3301.00. The Assistant Collector approved classification under heading 29.42, noting the presence of polymerized chemicals and waste plant materials. On appeal, the Collector (Appeals) upheld this classification, emphasizing the differences between the impugned product and terpenic-by products.The Ld. SDR argued that the impugned product should be classified under sub-heading 3301.00 based on its components and uses, as per chemical technology references. The Tribunal noted that the show cause notice only mentioned classification as 'Resinoid,' not as a terpenic by-product, which was a new point raised later and not permissible under review.Considering the lack of chemical analysis by the Examiner and the absence of new evidence from the Revenue, the Tribunal found no substantiation for classifying the product under sub-heading 3301.00. Therefore, the appeal by the Revenue was rejected, affirming the lower authorities' classification under sub-heading 2942.00 of the Central Excise Tariff Act.