TaxTMI 
TaxTMI 
2006 (5) TMI 91
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....ne Bench, Chennai (hereinafter referred to as "the Tribunal") in Civil Appeal Nos. E/1299/94-C and E/CO/366/94-C. By the impugned order, the Tribunal has allowed the appeal filed by the Commissioner of Central Excise, Hyderabad (hereinafter referred to as "the Revenue") and set aside the order - Appeal No. 2/94(H)(D)-C.E., dated 28-2-1994 of the Collector of Central Excise (Appeals). 2. The assessee was engaged in the manufacture of Penetrator -4893 falling under tariff item No. 68 of the old tariff since 1980 to 1986. The assessee was paying the excise duty on the product till the new tariff was introduced. After the new tariff, the product was being cleared under sub-heading No. 3801.19 as finishing agents, Dye Carriers to accelerate t....
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....a fresh classification list based on the Report of the Chemical Analyst classifying the product under item No. 3402.90. They explained the process of manufacture of the product clarifying that the product is a wetting agent. Further, it was contended that the product was only an auxiliary aid for improving the penetration process of dye solvent. The Adjudicating Authority vide order dated 4-6-1991 relying upon the opinion of the Chemical Examiner's Test Report came to the conclusion that the classification of Penetrator manufactured by the assessee would fall under heading 3402.90. The show cause notice was, accordingly, discharged and the proceedings initiated in OR No. 74/91 Adjn. were dropped. 4. Being aggrieved by the order of the Ad....
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....ibunal has also ignored Chapter Note 3 to the Chapter Heading 34 whereunder the products of the assessee would fall and wrongly relied upon the dictionary meaning of the product which had no relevance to the goods of the assessee. He also contended that the Tribunal has ignored the fact that the assessee had also filed the classification list of the other like industries which were considered by the Collector in his Original Order as also by the Collector (Appeals). 6. On the other hand, the learned senior counsel for the Revenue sought to support the order of the Tribunal to contend that the classification of excisable goods under different excise items involved a question of highly technical nature requiring scrutiny of the chemical ch....
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.... opining that the goods possessed surface active properties under Chapter Heading No. 3402.90 attracting nil rate of duty on the basis of the above-said notifications. The classification lists were approved by the Assistant Collector with effect from 28-2-1986. The Assistant Collector, Hyderabad-VIII Division drew the sample of Penetrator 4893 manufactured by the assessee and sent the sample to the Chief Examiner, CRCL, New Delhi for his opinion. In relation to the classification of the goods, the Collector vide Order-in-Original No. 191/91 dated 26-12-1991, on the basis of the Report of the Chemical Examiner and Chief Chemist and other material on record came to the conclusion that the goods have rightly been classified under tariff item 3....
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....Test Report of the Chemical Examiner and Chief Chemist of the Revenue unless demonstrated to be erroneous, cannot be lightly brushed aside. The Revenue has not made any attempt to discredit or to rebut the genuineness and correctness of the Reports of the Government, Chemical Examiner and Chief Chemist. Thus, the Reports are to be accepted along with other documentary evidence in the form of classification issued by the Department regarding use of wetting agents in the textile industries to hold that the product Penetrator 4893 possessed surface active properties and, therefore, is covered by Exemption Notification No. 101/66, dated 17-6-66 as amended from time to time. 8. The assessee has adduced cogent and convincing evidence to show t....