ORDER
J.H. Joglekar, Member (T)
1. These five applications involve common issue and are therefore being disposed of in this common order.
2. The issue is whether the product “alcodegrease” manufactured by the applicants is classifiable under sub-heading 3810.00 as pickling preparations as claimed by the assessees or whether they fall under sub-heading 3402.90 as cleaning preparations as maintained by the department.
3. We have heard Shri D.P. Bhave, Advocate for the applicants and Shri A.K. Chatterjee for the department.
4. Shri Bhave refers to the sub-notes under the HSN to sustain his case but clearly concedes that he does not have an opinion on the classification from an expert or expert agency to counter the opinion relied upon by the department. We have perused the sub-notes under both the contesting headings. Pickling preparations are normally acid based but can have alkaline base also. Degreasing preparations are normally alkaline but can have acid base also. The sub-notes list certain chemicals as components of the degreasing preparations. Shri Bhave submits that he does not have the details of the contested product and its contents.
5. Shri Bhave submits that it has been held in certain judgments of the Supreme Court that where an established classification is sought to be altered, no demand can be raised even for the previous six months. He names specifically the judgment in the case of Rainbow Industries v. C.C.E. -1994 (74) E.L.T. 3 and in the case of C.C.E. v. Bhiwani Textile Mills – 1996 (88) E.L.T. 639. Shri Chatterjee refers to the three-member judgment of the Supreme Court in the case of Ballarpur Industries Ltd. where the Bench has deferred from the judgment in the case of Rainbow Industries and has upheld the demand for six months.
6. The issue whether in a case of re-classification, the demand for the past six months would survive or not, has been referred to Larger Bench of the Supreme Court in the case of Cot Spun Ltd. -1998 (99) E.L.T. 24. Pending the final decision, in our opinion, the judgment in the case of Ballarpur Industries must be followed since it is made by a three-Member Bench.
7. Shri Bhave has no submissions on the financial hardship.
8. Considering the various aspects, we direct the assessees to deposit Rs. 30,000/- only as pre-conditions for hearing of the appeals. On such deposit being made there shall be stay and waiver of the remainder. The assessees are free to utilise the credit balance in their RG 23A account or in their PLA account for paying the deposit. The deposit shall be made within 8 weeks of the receipt of this order.
9. Case posted for reporting compliance on 29-7-1999.