TaxTMI 
TaxTMI 
1997 (7) TMI 417
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....n, however, the authorities found that M/s. Southern India Trading Agencies were the principal manufacturers and others were only dummies and by the impugned order, the clearances of all the units who are appellants before us have been clubbed for the purpose of demanding duty. The benefit of Notification 175/86 has been allowed to the appellants. However, claim for abatement of duty in terms of Section 4(4)(ii)(d) have been denied. The appellants product as per the record emerges as a result of mixing of the following ingredients : Ranipal (1) 1 Kg Acid Violet (2) 500 gms Acid Blue (3) 450 gms Acetic Acid (4) 50 ml Wetting agents (5) 100 ml 3. The learned lower authority has held that by reason of m....
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....nsists of mixing the following chemicals, namely, Ranipal, Acid Violet, Acid Blue, Acetic Acid, and Wetting Agents in different proportion to obtain the branded product `Regaul Ultramarine Liquid Blue'. The mixture of the above said chemicals in the medium of water would certainly fall within the ambit of chemical reaction and therefore a new product distinctly different from the raw materials used emerges. 5. He has pleaded that the learned Collector did not feel it necessary in this case to get any technical opinion and has in a very cryptic manner held that by mixing of the ingredients in question a new product emerged. He pleaded that the Tribunal in the decision cited supra in the case of Ujala in which case the chemical composit....
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....th the sides have been carefully considered. The first point of difference is whether the impugned product `Ujala' arises out of a process of manufacture or not. It is found from the record that the chemical examiner of the department has visited the appellants' factory. The entire method of manufacturing had also been verified by him and he had submitted that `Ujala' is made simply by mixing acid violet, ranipal and ultra marine blue in water heating them to a particular temperature and filtering this solution and bottling in small packing and packing them in paper cartons for marketing. The chemical examiner observed that only three colouring matters mixed together in a particular proportion for colouring the fabric. According to Note 6 t....
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.... the hands of the appellant. It is also, in this case, borne in mind that the Lar- ger Bench in the case of Saurashtra Chemicals v. Collector of Customs - 1986 (23) E.L.T. 283 = 1985 ECR 2477 (CEGAT SB-D) has held that in classification matters, the Chapter Notes and Section Notes govern the coverage of tariff headings. "The relevant headings in the tariff," observed the Tribunal, "have to be interpreted and applied in the light of the Section Notes and Chapter Notes which are statutory and binding like the headings themselves. These Section Notes and Chapter Notes, sometimes, expand and sometimes restrict the scope of certain headings. In other words, the scheme of the Customs Tariff Act is to determine the coverage of the respective he....
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....e considered the pleas made by both the sides. The learned Advocate for the appellants has a point when he states that the ratio of the decision cited by him will have a bearing on the issue before us. No doubt the percentage of the various ingredients entering the appellants product are diffe- rent from that of the product dealt with in the Tribunal's order. But the process of manufacturer and the use are similar and the Tribunal appears to have gone by what happens when the ingredients are mixed. It is in this back-ground the issue as it is has to be considered. A point may also arise for consideration whether by reason of having different percentage of the ingredients going into the product, the character of the product as such could be ....