TaxTMI 
TaxTMI 
1998 (5) TMI 99
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....20oC and left to stand for one hour at the same temperature, and held that the product manufactured by the assessee was classifiable under Chapter sub-heading 3402.90 is sustainable in law and thus, the ld. Commissioner Appeals rejected the appeal of the Appellants. Being aggrieved by this order, the Appellants have filed the present two appeals. 3. Shri Pradeep Jain, the ld. Advocate, submits that the product manufactured by the assessee was known in the market as Sulphonated Castor Oil and was so traded by the appellants. The ld. Counsel submitted that the ld. Collector Appeals placed reliance on the report of the Chief Chemist which was based on ISI Specification No. IS : 1044-1970. The ld. Counsel submitted that this ISI Specification was not in use during the material period inasmuch as the Technical Committee of the Bureau of Indian Standards has recommended for withdrawal of IS : 1044-1970 and that the same was subsequently withdrawn. The ld. Counsel also submitted that an affidavit was submitted from the partner of M/s. Shakti Dyes & Chemicals, In which Shri Ramgopal, The partner, had stated that sulphonated castor oil is manufactured and sold by us containing differe....
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....pecifications, the Affidavit and the case law cited and relied upon by both the parties. We note that in the Tariff, the relevant entries read : Chapter Heading : 34.02 Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap. 3402.10 - Sulphonated Castor oil, Fish oil or Sperm oil 3402.90 - Other 6. We note that the Appellant relied upon the decision of this Tribunal [1992 (62) E.L.T. 584]. In this decision, the Tribunal held that ISI Specification is meant to ensure quality control and was not relevant for determining the classification. It was, therefore, argued before us in view of this decision, reliance of the Chief Chemist on ISI Specification was misplaced, more so when the relevant ISI Specification was recommended to be withdrawn and was subsequently withdrawn. We have examined this decision of the Tribunal. We note that the Tribunal had rendered this finding on the basis that there were no test results indicating chemical composition of the disputed product. We also note that in that case, the manufacturers had neit....
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....e that sulphonated castor oil has been indicated as a specific product. The question, therefore, arises is whether the product called by the Applicant as `sulphonated castor oil' is actually sulphonated castor oil or not. No doubt, sulphonated castor oil is a chemical product. Therefore, specification of the item shall depend on whether the components constituting the sulphonated castor oil are those prescribed by the authorities for the purpose. We note that there is no definition given in the Tariff as to what sulphonated castor oil is and, therefore, we have to go by the ISI Specification as also the Technical literature. In the Condensed Chemical Dictionary, Turkey Red Oil, Castor oil sulphonated, Castor oil soluble has been described as `it is also known as ALIZARIN assistant and ALIZARIN oil because of its use in dyeing with ALIZARIN. We have also perused the technical literature on castor oil where the process of sulphonation has been described. This technical write-up does not help inasmuch as the water content is concerned. We have also perused the ISI Specification IS : 1044-1970. We have also seen the affidavit filed by the Appellant. We note that when a sample of the pr....
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....so note that the Adjudicating Authority has observed that the Affidavit of Shri Ramgopal was verified on 16-4-1993 and attested by the Notary Public on 20-4-1993. The adjudicating authority has very categorically held that this affidavit has no evidenciary value. After examining all the facts and the case law cited and relied upon, we find that there is no definition of Sulphonated Castor oil given in the tariff. We also note that the Technical Literature does not throw much light on the water content in the sulphonated castor oil. We also note that there was an ISI Specification and the date of withdrawal of the ISI Specification is not known. We also note that the ISI Specification is based on scientific investigation into the contents of the Product. We note that the Chief Chemist of the Central Revenue Control Laboratory, after examining all the facts, relied upon the ISI Specification. Since the product is a chemical product, test report is necessary for determination of the nature and use of the product. Therefore, the report of the Chief Chemist becomes more relevant and pertinent. The Test Report has not been assailed. Having regard to all the facts of the case and the obse....
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....ntly withdrawn. Thanking you, Yours faithfully, (T. Rangasamy) Joint Director (Chemicals)" 11. Therefore, the very basis on which the case made out for classification on IS 1044 : 1970 Specification for Turkey Red Oil does not survive. It has been well laid down that the ISI Specification is meant for quality control and does not apply for classification, as has been held in the case of Veto Co. v. Collector of Central Excise, as reported in 1992 (62) E.L.T. 584 and that of Plasmac Machine Mfg. Co. Pvt. Ltd. v. Collector of Central Excise, as reported 1990 (51) E.L.T. 161 (S.C.). Therefore, the classification to be adopted is to be on the basis of commercial understanding and the manner in which the goods are traded in the market. It has also been pointed out by the learned Counsel that the goods have been traded and marketed as sulphonated castor oil and in this regard, the evidence has been also produced by the appellants. In view of this evidence, which is on record, the contention of the appellants that the goods are sulphonated castor oil for classification under sub-heading No. 3402.10 is required to be accepted. 12. In that view of the matter, the impugned or....
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....at ISI Specification has been withdrawn by the very authorities and accordingly same cannot be taken as basis in determining the classification. 17. Countering the arguments, Shri H.K. Jain, ld. SDR submits that there was no mention of sub-standard sulphonated castor oil either in the tariff or under HSN and since as such it is not mentioned and the tariff entry 3402.10 specifies sulphonated castor oil and the item being not sulphonated castor oil and not in conformity with the ISI Specification, item is to be classified under 3402.90. He said that ISI Specification was withdrawn as per letter dated 23-9-1993 and in the case of CCE, Kanpur v. Krishna Carbon Paper Co. reported in 1988 (37) E.L.T. 480, Apex Court ruled that in the light of ISI Specifications and the Tribunal's decision reported in 1987 (29) E.L.T. 627, carbon paper would fall under Item 17(2) of Central Excise Tariff during the relevant period. He justified the order of the Member (Technical) in classifying the item under 3402.90. 18. I have carefully considered the submissions made by both sides with reference to the difference of opinion. I have perused the respective orders written by my learned Brothe....