AI Drafter 
TaxTMI 
TaxTMI 
2015 (9) TMI 90
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....tation, Opp. Indraprastha Park, Gate No. 4, Ring Road, New Delhi manufacture bricks by using sand, lime and ash. The ash used is in form of wet pond ash taken from the Thermal Power Plant. Earlier, the appellant's unit was located at Behrod in Rajasthan, where they were manufacturing the sand lime bricks by using sand and lime. Such bricks are also known as calcium silicate bricks and are required to conform to the IS specifications 4139-1989. Subsequently when they re-located so the unit to the present location, on account of the Notification dated 14th September 1999 of the Ministry of Environment and Forests, they were under obligation to use at least 25% of fly ash/pond ash. Admittedly the appellant used 50% by weight of the pond as....
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....AC. Beside this, some stock of bricks seized were also ordered to be confiscated with option to be redeemed on payment of redemption fine. Penalty of Rs. 10,00,000/- was imposed on Shri Rajesh Gupta, Managing Director under Rule 26 of the Central Excise Rules. Against this order of the Commissioner, these appeals have been filed along with stay applications. 2. Heard both the sides in respect of stay applications. 3. Shri K.K. Anand, Advocate, the learned Counsel for the appellant, pleading for waiver from the requirement of pre-deposit for hearing of the appeals, made the following submission:- (i) On shifting the factory from Behrod to the present location in Delhi, the appellant, in view of the notification of the Ministry of En....
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....h Lime Bricks is under preparation. He accordingly pleaded that the ISI specification for sand lime bricks permits the use of fly ash and thus the sand lime bricks made by using fly ash remain sand lime bricks only and cannot be called fly ash bricks. (iv) The appellant were under bonafide belief that the bricks manufactured by them are sand lime bricks eligible for duty exemption under Notification No. 5/06-CE and 6/06-CE, as according to the appellant, use of fly ash would not change the basic character of the bricks as sand lime bricks. In view of the above, he pleaded that the bricks being manufactured by the Appellant are sand lime bricks and not fly ash bricks and on this point, the appellant have strong prima facie case in thei....
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.... 6810, as the classification of a product is governed by the tariff entry and not on the basis of how the product is described in ISI specification. (v) Fly ash bricks are specifically covered by heading 6815. The goods, in question in which the fly ash is the pre-dominant constituent, would, therefore, be more specifically covered by heading 6815 as according to the Rules for interpretation of the tariff heading with specific description with prevail description over the heading with general description. 4.1 With regard to limitation, he pleaded that the appellant have suppressed the relevant facts, from the Department and, hence, the longer limitation period of 5 years has been correctly imposed and penalty under Section 11AC has be....
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....ispute that in the invoices issued by the appellant, the bricks manufactured and sold by the appellant are described as "sand lime, fly ash bricks" and the appellant, undisputedly, for manufacture of the bricks, in question, use 50% of the wets pond ash and the remaining quantity is of lime and sand the lime being about 20% and sand being about 30%. The Department's contention is that since 50% of the fly ash has been used, the fly ash would be the pre-dominant constituent even after ignoring the moisture contained and hence this fly ash which could give the bricks, their essential character and the bricks would be covered by heading 6815. The appellant's contention, on the other hand, is that 15% of the net paid cash, and if the mo....
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....ifferent temperatures and pressures and that pulverized fuel ash reacts with lime in presence of moisture to form calcium silicate hydrate which is a binder material and thus pulverized fuel ash lime bricks are a chemically bonded bricks. In terms of para 7.1, 7.2, 7.3 and 7.4 of the ISI specification IS 12894 - 2002 the fly ash bricks are supposed to have certain physical characteristics with regard to their comprehensive strength, drying shrinkage, efflorescence and water absorption. 7. In our order to prima facie view, when in the Central Excise Tariff there is no definition of a term in a tariff entry, its meaning as understood in the commercial parlance or trade parlance has to be adopted and for this purpose, one has to rely on the....