2024 (9) TMI 689

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent assesses has been misclassifying their product as 'Activated Earth' in guise of 'Washed Clay' or 'BLEACH-9' by misclassifying the same under chapter sub heading No. 25.05 claiming NIL rate of duty. 2. The department was of the view that 'Activated Earth' or 'Washed Clay' or 'Bleach-9 Earth' manufactured by the respondent is rightly classifiable under chapter sub heading 38.02 of the first schedule to the Central Excise Tariff Act, 1985 attracts Central Excise duty. Various periodic show cause notice came to be issued which were adjudicated by the learned Joint Commissioner vide order order-in-oroginal dated 21st December, 2017 whereunder the proceedings initiated against the respondent assessee for classifying the Bleach-9 product unde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ve letter, Dr. Chandrasekharam, IIT Mumbai vide his letter dated 21.10.2007 opined that Bleach-9 is also raw clay and not activated clay/earth in view of the technical parameters of both the clays are same as reported in the statement. He informed that clay washed with water and dried is not termed as activated clay. The properties of raw clay washed with water will not differ. 33.21 Similarly, I have perused Test result dated 22.10.2007 received from Shri M. M. Shah of M/s. Vaibhav Enviro Consultant, who submitted their report to the said assessee. The opinion of Shri M M Shah is reproduced here. "Opinion; technical characteristics of bleach 9 not show any activation of clay (bantonite) compared to technical characteristic of unwashed ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....was remain as "Mineral substances". For classification of "Mineral substance", I observe chapter sub heading which are as under. 25.05 2505.00 Mineral substances not elsewhere specified (including clay, earth colours, natural abrasives, sulphurs, slate and stone), lime; plasters with a basis of calcium sulphate, whether or not coloured, but not including plasters specially prepared for use indentistry   38.02 3802.00 Activated carbon; activated natural mineral products; animal black, including spent animal black I find that the "activated carbon; activated natural mineral products cover under the Chapter Sub heading 3802, whereas "Mineral substances not elsewhere specified (including clay, earth colours, natural abrasives, sul....