TaxTMI 
TaxTMI 
2020 (2) TMI 1603
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....goods namely, 'Desiccants - MBD 99' declaring its classification under CTH 250810190 of Customs Tariff Act, 1975 (CTA in short). Later, it was noticed by the Department that the said imported goods are 'Activated Clay and Activated Bleaching Earth' classifiable under CTH 38029019 of CTA, 1975 as the heading No. 2508 covers only 'processed and ground clay/earth' and does not include 'activated bleaching earths' as per Board's Circular No. 32/2002-Cus dated 10.06.2002. It is alleged that the activated clay/ activated earth/ processed bentonite falls under CTH 3802.90 since it is acid activated, because of which a different product with modified molecular structure having distinct properties like absorptive capacity, catalytic properties, ion ....
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....said allegation is incorrect and unfounded. Further, he has submitted that to ascertain the correct classification, the burden lies on the Department, which in the present case not discharged. Further, he has submitted that CBEC's Circular No. 32/2002-Cus dated 10.6.2002 was issued prior to modification/amendment to the scope of Tariff sub-heading 2508, which was introduced w.e.f. 01.01.2007, therefore, the same is not applicable to the facts of the present case. 3.1 Referring to the amendment of sub-heading from time to time and HSN Notes in this regard, the learned Advocate has submitted that the appellant has correctly classified their product under CTH 2508 and in absence of sufficient evidence to establish that it is an Activated Clay....
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....removed to improve absorbent property of the said Bentonite clay. We need not analyze the issue of classification any further as the product imported by the appellant is more or less similar to the product considered by the Tribunal in Komal Trading Company's case (supra). After analyzing the change of tariff headings from time to time and HSN Explanatory Notes of competing chapter heading, this Tribunal observed as follows:- 4.6 A careful reading of Note 1 to Chapter 25 read with HSN Explanatory Notes to CTH 25.08 and 38.02, make it abundantly clear that activated Bentonite merits classification under Heading 38.02. As per technical literature, activation of Bentonite by acid or alkali results in changes in the molecular structure of the....
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....is no specific inclusion, in view of Note 1 to Chapter 25 which excludes products whose structure has undergone a change, the said product merits classification under CTH 3802 90 19 and we hold accordingly. 7. Therefore, following the aforesaid precedent, we are of the view that the product Desiccants - MBD 99 is correctly classifiable under chapter sub-heading 38029019 of CTA, 1975. 8. Further, we find that in the present case, the show-cause notice was issued to the appellant on 1.12.2008 for recovery of the differential duty against the Bill of Entry filed on 23.4.2007 invoking the extended period of limitation. In the aforesaid case, this Tribunal even though decided the classification of the product to be under CTH 38029019, however,....