2007 (2) TMI 445 - AT - Customs

Summary

Issues involved: Classification of imported chemical Sodium Cyanide under Customs Tariff Heading, applicability of Insecticides Act, confiscation under Section 111(d) of Customs Act, penalty under Section 112(a) of Customs Act, exemption under Section 38 of Insecticides Act.

Classification Issue:
The importers sought classification of Sodium Cyanide under Chapter Customs Tariff Heading 2837.1100, while the Commissioner classified it under Customs Tariff Heading 3808.1099. The Commissioner confiscated the goods under Section 111(d) of the Customs Act for import without the required permit and imposed a penalty under Section 112(a) of the Customs Act.

Applicability of Insecticides Act:
The Commissioner contended that Sodium Cyanide is covered under the Insecticides Act, 1968, requiring an import permit from the Registration Committee. The Commissioner confiscated the goods and imposed a penalty. The Commissioner (Appeals) held that the imported items are exempt under Section 38 of the Insecticides Act.

Judgment:
The Tribunal considered the form, concentration, and use of the imported Sodium Cyanide. It was observed that the product was not intended for use as insecticides. Referring to a previous Tribunal order, it was established that certain chemicals, like boric acid, mentioned under the Insecticides Act, do not require a permit for import. Therefore, the Tribunal classified the imported goods under Heading 2837.1100, concluding that they are not insecticides. The appeal by the importer was allowed, while the Department's appeals were rejected.

This judgment clarifies the classification of Sodium Cyanide, the requirements of the Insecticides Act, and the implications of importation without the necessary permits under the Customs Act.