1994 (2) TMI 154

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....ation for classification under Heading 3402.90 stated the ground as follows :- ".....inasmuch as the said product is not used as colouring matter and used for auxiliary washing of the fabrics which results in brightening the fabrics ......." 1.2  A sample of the product RLFW was also drawn. Report of the Chemical Examiner, Custom House, Madras is as follows :- "The sample is a blue coloured liquid. It is aqua dispersion of Ultramarine Blue. It does not possess any surface active property. It is not a surface active agent." 1.3  On or about 28-3-1987, Assistant Collector filed an application under Section 35E of the CE & S Act, 1944 to the Collector (Appeals) for review of the said order dated 29-10-1986 and classifying the said product under sub-heading 3402.90. 1.4  The lower appellate authority allowed the application of the Revenue under Section 35E. After setting out the respective headings, Chapter Notes, the lower appellate authority has held as follows :- ".....Therefore the product RLFW is correctly classifiable as washing preparation including auxiliary washing preparations. As the liquid fabric whitener does not impart any colour to the fa....

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....nbsp;3.6   Methyl Violet 0.2(0.2%)   Fomaldehyde  0.3   Perfumer 0.5   Denatured Spirit 77.58 Method of Manufacture : Quantity of Ultramarine Blue is added to water in a mixing vessel and then stirred with a stirrer. To this, Bentonite soaked in Spirit is added and stirred well till Bentonite is dispersed well. Ranipal and Methyl Violet are added to this and again stirred. Finally, this is followed by addition of perfume and formaldehyde. This mixture is stirred and strained so that it is free from any agglomerate. Purpose of Ingredients : Ultramarine blue - to give whitening effect to the fabric   Bentonite - to help to keep blue particles in suspension.   Ranipal and Methyl Violet - to enhance the effect of ultramarine blue in whitening and blueing of the fabric.   Formaldehyde - as a preservative   Perfume - perfuming   Water - as a medium." 2.1  Learned advocate, Shri Jatin Ghosh for the appellants has urged that RLFW is a mixture, and not a chemical compound, based on inorganic substance, ultramarine blue, though some of the ....

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....lues; Cosmetics, textile printing. Note : Used in very low percentage to intensify whiteness of - laundered clothing etc. by off setting yellowish ingredients; gives a blue rather than a `yellow' white. (ii) Kirk-Othmer Encyclopedia of Chemical Technology (Second Edition) - Vol. 15 page 51 Ultramarine (blue) find uses in many industries - frequently as a toner or `whitener' for white flats and enamels; special kinds of printing inks.... Their whitening properties are also used in laundry bleaches and paper making. (iii) ISI Specification for Ultramarine Blue for use in Textile Industry (IS: 11217-1984) :- In para 0.2, it is stated that ultramarine blue is used extensively in textile industry as a tinting material. It is also used in laundry industry. Use of ultramarine blue enhances the appearance of white, bleached textiles. 2.4  Inviting attention to HSN Explanatory Notes under Heading 34.02 - S. No. (B), ld. advocate has urged that washing preparations (including auxiliary washing preparations) and cleaning preparations referred to in that heading of the CETA, 1985 have a basis of soap or other organic surface active agents. This is clear from the relevant....

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....the Tribunal. This is a position which is legally well settled by now. It is only the question of classification before the Tribunal; no question of higher liability arises because the question of confirmation of a certain demand of duty for a certain period is not before the Tribunal. 4.1  We have carefully considered the pleas advanced from both sides. In classification of a product under CETA, 1985, first and foremost exercise is to determine the nomenclature, character and function of the product. With reference to the cumulative consideration of these factors, we have to identify it with one or the other heading/sub-headings of the tariff with reference to the relative Section Notes and Chapter Notes and the Interpretative Rules. CETA 1985 being a statute, well settled statutory rules of interpretation would further govern the interpretation of headings, sub-headings, Section Notes, Chapter Notes and Rules of Interpretation. 4.2 The product RLFW from its composition and method of manufacture is a preparation with a basis of ultramarine blue, an inorganic substance. As rightly pointed out by the appellants' learned counsel ultramarine blue constitutes the major ....