Circular No. 54/89 Dated 20-9-1989

Central Excise - Classification of ‘special grey port-land cements’ - Whether under Sub-heading No. 2502.20 as ‘grey portland cements’ or under Sub-heading 2502.90 as ‘other’ cements - Whether the revised classification should be retrospective or prospective in nature - Doubts regarding - Clarification thereof.- A doubt has been raised as to whether ‘special grade grey portland cements’ manufactured by certain companies for use by Railways, Defence etc. as per the specifications of the customers should be appropriately classifiable under Sub-heading No. 2502.20 as ‘grey portland cements’ or under Sub-heading No. 2502.90 as other cements. A doubt was also raised as to whether in a case where such ‘special grade grey portland cements’ were earlier classified under Sub-heading No. 2502.90 as ‘other’ cements and, later on, it is decided to revise the classification to sub-heading No. 2502.20 as ‘grey portland cements’ whether the revised classification should take effect prospectively or retrospectively.

2. The matter has been examined by the Board. The Board has noted that the Sub-heading No. 2502.20 of the new CET covers all ‘grey portland cements’ makes no distinction between ordinary and ‘special grade grey portland cements’. A view could therefore, be possible that ‘special grade grey portland cements’ in question would be appropriately classifiable under Sub-heading No. 2502.20 as ‘grey portland cements’. However, since the matters are under adjudication, it would not be proper for the Board to give a categorical ruling one way or the other. The Board, therefore, desires that the concerned jurisdictional Collectors of Central Excise should adjudicate the particular case. Regarding the recovery of short levy, if any, for the past period your attention is invited to the observations of the Supreme Court in their Judgment delivered in the case of Madhumilan Syntex Pvt. Ltd. v. Union of India and Others (Civil Appeal No. 1110 of 1986 [1988(05)LCX0034 Eq 1988 (035) ELT 0349 (S.C.)]. The parties would be at liberty to avail of appellate remedies, if they felt aggrieved.

3. The above guidelines may be brought to the notice of the lower field formations and the trade interest may also be suitably advised.

4. All pending assessment may be finalised on the above basis.

[F. No. 115(13) 89-CX.III]