Case Law Details
Gujarat Alkalies And Chemicals Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Chlorinated Paraffin Wax (liquid form) classifiable under Sub Heading 3824 90 & CBIC clarification has a retrospective effect
In this case, Gujarat Alkalies And Chemicals Ltd (the appellant) was engaged in the manufacture and clearance of chlorinated paraffin. The appellant classified its product under Tariff Item No. 38 12 2090. However, the tax department contended that the appellant’s product should be classified as chlorinated paraffin wax under Tariff Item No. 2712 20 10 and demanded the payment of differential duty for a specific period.
The central issue in this case was the correct classification of the appellant’s product – whether it should be classified as chlorinated paraffin wax or chlorinated paraffin in liquid form.
The appellant argued that they were manufacturing and clearing chlorinated paraffin in liquid form, not chlorinated paraffin wax. They cited a Board Circular (Circular No. 950/01/2011-CX dated 01.08.2011) that clarified that chlorinated paraffin in liquid form should be classified under Sub Heading 3824 90 of the Central Excise Tariff Act. The circular also stated that chlorinated paraffin wax (in solid form) should be classified under Sub Heading 3404 90 of the Central Excise Tariff Act after the Budget in 2010.
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