2000 (9) TMI 509

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.... Excise Rules, 1944. 2. Brief facts of the case are that the appellants are the manufacturer of "Rockwool" falling under Chapter 68 of CETA 1985. Prior to 14-5-1997 this product was classified under sub-heading No. 6803.00 and the appellants were availing benefit of exemption Notification No. 5/97. But the Notification was rescinded vide Notification No. 32/97 dated 14-5-1997 and the appellants changed the classification to 6807.10 by filing fresh classification list effective from 14-5-1997 and thereby paying duty at a lower rate of 8% ad valorem and therefore Show Cause Notices were issued and the demands were confirmed. 3. The personal hearing in the matter was fixed on 22-9-2000. Shri R. Nambirajan, Advocate accompanied ....

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.... render the first portion of the description of Heading 68.07 redundant. He submitted that it is settled question of law that such an interpretation cannot be adopted. 4. Shri Nambirajan, thereafter, went into the legislative history in respect of items under Chapter 68 to say that prior to 14-5-1997, (i.e. the date of President assent to the Finance Bill for 1997-98), there was no dispute regarding it's classification under Heading 6803, when there was no separate heading like 6807.10, and when exemption was separately available for goods where more than 25% blast furnace slag was used through Notification No. 36/93 (till 22-7-1996) as amended by Notification No. 8/96 (till 28-2-1997), as amended by Notification No. 5/97 (till 13-5....

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.... is also important to note here that the Heading 68.07 mentions "goods" and not "other goods". Had it described "other goods", the item rockwool inspite of the fact that in its production more than 25% of blast furnace slag have been used, would have got excluded from 68.07, since rockwool is otherwise covered under Heading 68.03. When this important consideration is factored into the principle of classification, the obvious conclusion would be that sub-heading 6803.00 covers, inter alia, rockwool in general, whereas sub-heading 6807.10 cover, inter alia, that variety of rockwool in which more than 25% by weight of blast furnace slag have been used. To this end, I would therefore hold that sub-heading 6807.10 is more specific for a restrict....