LexINDIAN RAYON INDUSTRIES ETC. versus COLLECTOR OF CENTRAL EXCISE, JAIPUR
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\ -,..,. • INDIAN RA YON INDUSTRIES ETC. A v. COLLECTOR OF CENTRAL EXCISE, JAIPUR MAY 12, 1998 [SUJATA V. MANOHAR AND D.P. WADHWA, JJ.] B Central Excises & Salt Act, 1944-Entry 23(i) or 23(ii)-Rapid- hardening white cement-Assessment of-Prior to 28-2-1986-Held, classifiable under the head "rapid-hardening cement" in Entry 23(i) and not C under Entry 23 (ii)-More so when the product was licensed under both the IS! specifications 8041: 1978 and 8042: 1978 for rapid-hardening cement and white cement respectively. Words and Phrases-"Rapid-hardening cement"-Meaning of-In the context of Entry 23(i) of the Central Excises & Salt Act, 1944. D Excise Tariff Act, 1985 : Sub-heading 2502.20 or 2502.90-Assessment period subsequent to 28-2-1986 but prior to 1-3-1992-Rapid-hardening white cement-Held, classifiable under the head "rapid-hardening cement" under Sub-heading E 2502.20 and not under Sub-heading 2502.90-Excise. Item 2502.21 (as in force with effect from 1-3-1992)--Scope of-Held, Rapid-hardening white cement covered. The appellants were manufacturers of rapid-hardening white cement. F For the period prior to 28-2-1986, the relevant tariff entry for cement was Tariff Entry 23. After coming into force (If the new Excise Tariff from 28- 2-1986, the relevant entry is 2502. There was a change in entry 2502, w.e.f. 1-3-1992. The disputes relate to the classification of white cement produced by the appellants under the Central Excise Tariff in force at the relevant G time. According to the appellant, the correct classification would be Entry 2502.20. These entries were similar to old entries 23(i) and 23(ii). From 1- 3-1992, Entry 2502.20 covered the case because it expressly dealt with white cement whether or not with rapid-hardening quality. The cement produced by the appellants conformed to the ISi specifications for rapid-hardening port land cement, i.e. 18:8041:1978. The adjudicating officer held that the H 333 334 SUPREME COURT REPORTS [1998] 3 S.C.R. A white cement manufactured by the appellants conformed to the properties of rapid-hardening cement, and that it fell under Tariff Entry 23(i) or 2502.20. The Tribunal, however held that white cement would not fall under Entry 23(i) or 2502.20. Hence this appeal. Allowing the appeal, this Court B HELD : In Item 23(i) of the Central Excises & Salt Act and Sub- heading 2502.20 of the Central Excise Tariff Act, apart from grey portland cement, there are other kinds of cement which are mentioned without any reference to their colour but with reference to their properties. Thus, the entry includes rapid-hardening cement, low-heat cement and waterproof C hydrophobic cement. The appellants have produced enough technical material to show that rapid-hardening cement can be grey portland or white. Since these items in Entry 23(i) and Sub-heading 2502.20, have no nexus with the colour of the cement, unlike the first item which is expressly grey portland cement, there is no reason why the other kinds of cement referred to in the D . entry should be confined only to cement of grey colour. The rapid-hardening property has no correlation with the colour of the cement. Hence, the Appellate Tribunal was not right in excluding rapid-hardening cement having white colour from classification under the head "rapid-hardening cement" in Entry 23 (i) or 2502.20. Moreover, ISi specification also has two different specifications, 8041:1978 for rapid-hardening cement and 8042:1978 for E white cement. The product of the appellants is licensed under both these specifications. Therefore, the appellants' contention that prior to 28-2-1986 the item manufactured by them was classifiable under Tariff Item 23(i) while after this date and up to 1-3-1992, it was classifiable under Sub-heading 2502.20 is upheld. [338-D-H; 339-A-B] F Kajaria Export Ltd. v. Union of India, (1995] Supp. 3 SCC 61, distinguished. Aalborg Portland, Denmark: "The Technology of White Concrete", referred to. G CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5819 of 1994 Etc. From the Judgment and Order dated 23.8.94 of the Central Excise & Gold (Control) Appellate Tribunal, Delhi in A. No. E./3060/92-C. H P.S. Jha for the Appellants in C.A. No. 5819/94. I .. INDIAN RA YON AND INDUSTRIES LTD. v. C.C.E. [SUJATA V. MANOHAR, J.] 335 Sanjeev Sen, (Ms. Monica Singal) for Mis. JBD & Co., for the Appellant A .~ in C.A. No. 6030/94. R. Mohan (G. Prakash) and V.K. Verm
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