SEN, J. - (1.) M/s. Reliance Cellulose Products Limited, the appellant-company manufactures Sodium Carboxymethyl Cellulose (hereinafter referred to as SCMC). The contention of the appellant-company is that the product manufactured by them is classifiable under Item 68 of the Central Excise Tariff Act. The contention of the Department is that the product comes squarely within the tariff item 15A (1) and, therefore, there is no reason to fall back upon the residuary head of tariff item No. 68.
(2.) TARIFF item 15A at the material time stood as under : Artificial or Synthetic Resins and Plastic Materials; and other materials and Articles specified below- JUDGEMENT_464_6_1997Html1.htm Prior to 1-3-82 tariff item 15A stood as under : "15A. Artificial or synthetic resins and plastic materials and cellulose esters and ethers and articles thereof- (1) The following artificial or synthetic resins and plastic materials, and cellulose esters and ethers in any form, whether solid, liquid or pasty, or as powder, granules or flakes, or in the form of moulding powders, namely :- xxxxx (2)xxxx (3) Polyurethane foam. (4) Articles made of polyurethane foam. The argument of the appellant is that prior to 1-3-82, the main heading of the Tariff Item 15A included "cellulose esters and ethers" alongwith "artificial or synthetic resins and plastic materials." Sub-item (1) of Tariff Item 15A listed the various materials under three clauses (i), (ii) and (iii) which were to be subjected to central excise duty. After the amendment made by the Finance Act, 1982, the opening sentence of sub-item (1) of Tariff Item 15A, viz. "The following artificial or synthetic resins and plastic materials. . . . . namely", clearly indicates that only those materials which were mentioned in clauses (i) (ii) and (iii) were to be taxed under Tariff Item 15A (1). Cellulose ether and esters do not figure in any of these three clauses. It means that the clear intention of the legislature was to exclude cellulose esters and ethers from Tariff Item 15A(1).
(3.) THIS argument is without any substance because under the amended tariff item 15A under clause (i), various items which have to be taxed under item 15A have been enumerated and "other cellulose esters, cellulose ethers and other chemical derivatives of cellulose plasticised or not (for example, collodions, celluloid) have been specifically included. The appellant-company filed a classification list on 18-6-82. Their product Sodium Carboxymethyl Cellulose was described as Carboxymethyl Cellulose and classified under Tariff Item 68. The classification list was approved provisionally and the assessments were made provisionally under Rule 9-B of the Central Excise Rules from 1-3-82. A sample of the product was tested by the Departmental Chemical Examiner, who reported the test result as follows : "The sample is in the form of a pale brown powder. It is a sodium salt of carboxymethyl cellulose... .... a cellulose ether." ;