TaxTMI 
TaxTMI 
2003 (4) TMI 312
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....ified the same under sub-heading No. 3204.19. He states that the appellants manufacture plastic crayon falling under sub-heading 9609.00 which is chargeable to nil rate of duty, in the manufacture of which an in process product known as crayplas shapeless plastic crayon (impugned good) comes into being. According to him, the impugned goods is the mixture of various raw-materials in shapeless and solid form, which only needs to be molded into plastic crayon. The appellants had filed a classification list No. 6/1994-95 on 4-4-1994 in respect of the impugned good claiming classification under sub-heading No. 9609.00 as an in-process material on 31-3-1995. A show cause notice was issued to the appellants suggesting classification of the impugne....
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....ed 20-11-2002. He dropped all the four show cause notices holding the impugned goods to be classifiable under sub-heading 9609.00. However, the said order-in-original was reviewed by the Commissioner, Mumbai-III which resulted in a departmental appeal to the Commissioner (Appeals) and the same has been decided by him under the impugned order-in-appeal dated 6-2-2002 confirming the demand for Rs. 6,38,382/- and imposing a penalty of Rs. 60,000/-. 3. Shri M.H. Patil, learned advocate challenges the impugned order-in-appeal on the following grounds :- (1) The impugned goods are nothing but unfinished plastic crayon and therefore, the same are classifiable under sub-heading No.9609.00 as crayon in view o....
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....ourt in the case of Reliance Cellulose Products Ltd. v. Collector of Central Excise, Hyderabad - 1997 (93) E.L.T. 646 (S.C.). It is his contention that the decision of the Special Bench in the case of Luxor Pen Company v. Collector of Customs, Calcutta - 1994 (70) E.L.T. 294 (Tri.) will not apply as the said decision has not considered the possibility of classification under Chapter 96 as it is well settled that precedent is not binding if the same has not considered all arguments. He also refers to the Explanatory Note to HSN under Chapter 96 and Chapter 32 to say that Chapter 96 covers carving and moulding materials and therefore, the impugned goods would fall under Chapter 96 whereas since the same are not coloring matter, the same would....
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....ndore - 2000 (125) 745 (Tri.) (12) Bharat Wagon & Engg. v. C.C.E., Patna - 2001 (131) E.L.T. 681 (T) = 2001 (44) RLT 557 (CEGAT - Kol.) (13) D.H. Patkar & Sons & Anr. v. Commissioner of Customs (G), Mumbai - 2001 (129) E.L.T. 651 (T) = 2001 (44) RLT 563 (CEGAT-Mum.) (14) Fedders Lloyd Corporation Ltd. v. C.C.E., Mumbai-II - 2001 (135) E.L.T. 1331 (Tri.-Del.) (15) Tapex Corporation v. C.C.E., Belgaum - 1998 (103) E.L.T. 580 (Tri.) (16) Tata Iron & Steel Co. Ltd. v. C.C.E. -1995 (75) E.L.T. 3 (S.C.) (17) Collector of Customs, Cochin v. State of Kerala - 1993 (66) E.L.T. 351 (Ker.) (18) Satellite En....
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....e or unfinished provided that incomplete or unfinished goods have essential character of the complete or finished goods. GIR 4 states that goods which cannot be classified in accordance with the above rules (Rules 1, 2, 3) shall be classified under the heading appropriate to the goods to which they are most akin. The adjudicating Deputy Commissioner has reproduced the gist of the test report from the office of the Deputy Chief Chemist as follows :- "Shapeless Plastic Crayons are in forms of lumps of irregular shapes and colours comprising of waxy, fatty and organic colouring matter bound together with other binding matter, inorganic fillers and additives. It is not possible to give %age of each ingredient used in the product. It has the ....
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....unfinished goods having the essential characteristics of complete or finished goods under a heading appropriate to such complete or finished goods. In the instant case, the impugned goods only require to be given the shape of crayons before they can be made into finished crayons and as such, they can be considered as incomplete or unfinished goods. In any case, GIR 4 requires goods to be classified under a heading appropriate to the goods to which they are most akin. In the instant case, application of this rule is not required in view of application of GIR 2(a), but we do note that the impugned goods are more akin to crayons under sub-heading 9609.00 than to pigments and preparations based thereon falling under sub-heading 3204.19. The rul....