2004 (8) TMI 467 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Act, 1975

Analysis:
1. The appellants imported goods declared as synthetic resin and classified them under Heading 3904.90 of the Customs Tariff Act, 1975. However, the goods were later claimed to be master batch, which falls under Heading 3204.90. The dispute arose regarding the correct classification of the goods.

2. The technical specifications revealed that the goods contained 9 to 11% additive in polyethylene resin, specifically Glycerol Monostearate, to assist in molding LDPE articles. The lower authority classified the goods as a solution/dispersion of surface active agent under Heading 3402 based on the Hawley's Chemical Dictionary definition. The Commissioner (Appeals) upheld this classification, leading to the appeal.

3. The test report by the Deputy Chief Chemist described the goods as spherical pallets composed of polyethylene synthetic resin and glycerol monostearate additive with specific gravity less than 0.94, not being a synthetic organic matter. Another opinion by Dr. Sen indicated that the goods could be considered a chemical master batch, akin to a colorant master batch, falling under Heading 3204.90.

4. The Deputy Chief Chemist's opinion supported the classification of the goods as a master batch under Heading 3204.90 due to the presence of glycerol monostearate as an organic chemical. The goods were intended for use in preparing foamed/cellular polyethylene sheets, indicating characteristics of a master batch rather than a surface active agent under Heading 3402.

5. The tribunal concluded that the goods should be classified under Heading 3204.90 as a master batch, overturning the lower authorities' decision to classify them under Heading 3402. The orders of the lower authorities were set aside, and the appeal was allowed in favor of the appellants.

This detailed analysis highlights the key points of the judgment, focusing on the classification dispute of the imported goods under the Customs Tariff Act, 1975, and the reasoning behind the tribunal's decision to uphold the classification as a master batch under Heading 3204.90.