2018 (7) TMI 308

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.... Shri Santhana Gopalan. D, Advocate For the Appellant Shri S Govindarajan, AC (AR) For the Respondent ORDER Brief facts are that the appellants are engaged in the manufacture of Mosquito Coils falling under Chapter Heading No.3808.10. The Officers of Preventive Unit visited the premises on 31.8.2005 and found that they had cleared 'pre-mix' (a commodity used for the manufacture of....

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....peals) and vide order impugned herein, the Commissioner (Appeals) confirmed the demand, interest and imposed penalty. Aggrieved by such order, the appellants are now before the Tribunal. 2. On behalf of the appellant, the Ld. Counsel, Shri. D. Santhana Gopalan submitted that the pre-mix powder is merely a mix of natural powders. Mere mixing of two or more essences in certain proportion does not....

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....ty cannot sustain. Further the product is not classifiable under Chapter heading 3824. 3. Without prejudice to the above argument, the Ld. Counsel submitted that the entire exercise is revenue neutral. The fact that the pre-mix was stock transferred to their sister unit is not disputed. Such pre-mix is used for manufacture of mosquito coils at their sister unit which are then cleared on payment....

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....argued with reference to the HSN Notes and submitted that the intermediate product of Chapter No.38 will also get classifiable under the same chapter provided the intermediate product has the essential character of final product. As per HSN Notes vide page-583, 584 and 581, Chapter Heading 3824 also includes those consisting of mixtures of natural products. Therefore the pre-mix is an intermediate....