1994 (1) TMI 144

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....ylene granule with inorganic chemical and other additives; (2) Master Batches of Low Density Polyethylene granule with organic chemical and other additives; and (3) Compound of Low Density Polyethylene granule prepared with admixture of other additives. They filed a classification list effective from 1-9-1988 claiming classification of the above product under sub-heading 3901.10 on the grounds that in terms of Notes (1), (3) and (6) of Chapter 39 Master Batches cannot be deemed as manufactured products/goods under the Central Excise Tariff Act. However, by his order dated 19-7-1990, the Assistant Collector held that PVC Compound containing organic pigments was classifiable under sub-heading 3204.19 and PVC Compound containing inorganic pigm....

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....em 15-A(1) as claimed by the assessee. He contended that even though for the period prior to 1-3-1986 the Tribunal's finding was against the appellant, no recovery would be permissible for the period prior to that date since in the show cause notice the Department sought to classify the goods under T.I. 14-I(1)(ii) as against the appellants claim for assessment under Tariff Item 15-A(1), whereas the Tribunal had held that during that period the goods in question were classifiable under TI 68. He argued that no show cause notice classifying the goods under T.I. 68 having been issued, no recovery would be permissible in terms of the Tribunal's decision. In support of his contention he cited the following case law : 1. Kutty Flush Door....

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.... He submitted that the Board's clarification cited by the learned Consultant was not relevant since the disputed goods were not coloured plastic granule but Master Batches. He stated that in terms of Note 2 to Chapter 32 the goods in question were correctly classifiable under sub-heading 3204.19 if they were based on inorganic pigment and under sub-heading 3206.90 if they were based on inorganic colouring matter. On these grounds, he pleaded for rejection of the appeal. 4. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen from the order dated 19-7-1990 passed by the Assistant Collector that the dispute was in regard to the classification of three products i.e., (1) Compo....