1981 (3) TMI 242

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....aw or not. 3. The demand was issued by the Asstt. Collector more or less simultaneously with the Asstt. Collector's decision holding that the goods were synthetic organic derivatives used in dyeing process and therefore classifiable under item 14-D of the Central Excise Tariff. At the earlier stage the same Asstt. Collector had classified the goods as not falling under item 14-D in view of the report of the Chemical Examiner who had opined that the goods were not a synthetic organic derivatives used in dyeing process. The Asstt. Collector revised the earlier classification with effect from 30-7-1975. The first decision regarding classification was set aside in appeal. It was confirmed on de novo adjudication on 21-12-1976. With effect....

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.... meaning thereby that the demand for the period 1-8-1974 to 3-12-1974 is hit by limitation of time. 4. On the question of merits the applicants have had two opportunities of personal hearing. At the second hearing before the Bigger Bench the applicants had also brought their technical expert along with their legal representative. The Chief Chemist was present from the Department side. After referring to various technical literatures the applicants could not controvert the Chief Chemist's view that the product was synthetic organic derivative. 5.1. The applicants' technical expert Shri Bhatnagar contended that copper complex was a chemical and that the structural formula of copper complex would be as under : He contended that th....

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....t that the impugned goods were a chelate compound which are referred to in technical literature as an organic coordination compound in which the metal ion is bound to atoms of non-metals nitrogen, carbon or oxygen, to form a hetrocyclic ring having coordinate covalent bond. If these were directly used for dyeing, those would have been classified as a dyestuff but since they are not used directly these are to be treated as S.O. derivatives used in dyeing process. 5.4. The applicant's objection that Hetrocyclic compound would not cover the impugned goods with a metal complex was refuted by the Chief Chemist by referring to item No. 26 at page 421 of C.C.C.N. under sub-chapter X, which reads as :- "metal complex compounds of 8-Hydroxy q....

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....cturally the rings should be present was not of relevance. It was further pointed out by the Chief Chemist that the finished product viz. copper complex, had in its structure atom-wise the complete formula of N.T.A. in a slightly re-organised form, in that the terminal hydrogen had been replaced by the copper atoms. This point was explained by the Chief Chemist with reference to diagram of the two formulae and Shri Bhatnagar concurred in this view. 6. In their latest communication the applicants have, however again harped on the old point that the product is not organic compound but certainly inorganic compound as reported by some of the laboratories consulted by them on the basis of the behaviour of the product. Since the authentic t....