2015 (10) TMI 1836

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....ing but lime stone contains calcium carbonate, magnesium carbonate, etc. After burning it to the requirement, the product is graded for unburnt stone and final product is cleared by trade name as 'Burnt Lime'. Thus, Calcium Carbonate (Ca Co3) after burning becomes Calcium Oxide and Carbon dioxide. The respondent had not taken Central Excise Registration Certificate and was not paying Central Excise duty since their product is classifiable under heading 2505.00 of the Central Excise Tariff Act and wholly exempted from payment of duty (according to them). Samples were drawn and sent to Chemical Examiner who reported that percentage of Calcium Oxide (CaO) varies from 57.5% to 80.1% in the final product. 2. Proceedings were initiated against....

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.....00 Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides." 5.2. The Commissioner has taken note of the claim made by the respondent and their reliance on the Board's Circular dated 10.7.1991 after the issue was discussed in the Tariff Conference. For better appreciation of the relevant portion of the Board's Circular No. 112/6/91-CX3 (Circular No. 18/91-CX3) dated 10.7.1991 is reproduced below : "A doubt has been raised as to whether in the light of Note (2) of Chapter 25 which states that Heading No. 2505 does not cover products that have been calcined etc., the burnt lime would get excluded from Heading No. 25.05. The point was discussed in the 1st southzone....

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....g practically no clay, iron oxide, manganese oxide, etc.) such as the product obtained by calcining precipitated calcium carbonate; The Heading also covers fused lime obtained by fusing ordinary quicklime in an electric furnace. This product has a high degree of purity (approximately) 98% calcium oxide; it is crystalline and generally colourless. It is used, in particular, for refractory linings for furnaces, in the manufacture of crucibles and for addition to concrete, in small pieces, to increase in resistance to water. Calcium peroxide (CaO) is a white or yellowish powder, hydrated (usually with 8 H2 O) sparingly soluble in water. Used as a bactericide and as a detergent, in medicine and in the preparation of cosmetics.....

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....at this claim cannot be accepted mainly because the Chapter Note is proceeded by the words "except where their context otherwise requires". 5.7. In the Tariff description, it is not specified 'Burnt Lime'. Lime includes Burnt Lime also. In fact, it includes all types of limes. It is to be noted that Tariff heading as it reads now does not have specific heading for Burnt Lime, Calcium Hydroxide, etc. 5.8. The claim of the department is that Note 1 to Chapter 28 provides that separate chemically defined compounds, whether or not containing impurities are covered. However, this submission is not supported by HSN Explanatory Note reproduced above as well as the Board's Circular referred to and discussed above. What is covered by Chapter 2....