Home Case Index All Cases Customs Customs + AT Customs - 1984 (12) TMI AT This
Issues Involved:
1. Classification of Polyethylene Glycol 300 (PEG 300) and Polypropylene Glycol (PPG 1010 and PPG 2020) under the Customs Tariff Act, 1975. 2. Applicability of additional duty under the Central Excises and Salt Act, 1944. Detailed Analysis: 1. Classification of Polyethylene Glycol 300 (PEG 300) and Polypropylene Glycol (PPG 1010 and PPG 2020) under the Customs Tariff Act, 1975: Facts and Arguments: - The dispute centered on whether PEG 300 and PPG 1010 and PPG 2020 should be classified under heading 38.01/19(1) or 39.01/06 of the Customs Tariff Act, 1975 (CTA, 1975). - The Appellate Collectors of Customs at Madras and Bombay classified the goods under heading 38.01/19(1), while the Central Government's show cause notices suggested heading 39.01/06. - The products in question are polymers but do not possess resinous or plastic properties, thus not fitting the description of artificial or synthetic resins or plastic materials. Department's Position: - The Department argued that the products should be classified under heading 39.01/06 based on Note 2(c) to Chapter 39, which includes resols, liquid polyisobutylene, and similar artificial polycondensation or polymerisation products. - The technical opinion from the Deputy Chief Chemist supported this view, stating that PEG 300, PPG 1010, and PPG 2020 were similar to resols and liquid polyisobutylene. Respondents' Position: - The respondents contended that the products did not have resinous or plastic properties and should not be classified under heading 39.01/06. - They also argued that the products should be classified under heading 38.01/19(1) or, alternatively, under heading 34.01/07(2) as lubricating preparations. Tribunal's Findings: - The Tribunal noted that for a product to fall under heading 39.01/06, it must be similar to resols or liquid polyisobutylene, which can be further polymerised into resins. - The Department failed to provide evidence that PEG 300, PPG 1010, and PPG 2020 could be further polymerised into resins. - The Tribunal concluded that PEG 300 was not classifiable under heading 39.01/06 and was appropriately classifiable under heading 38.01/19(1) as a miscellaneous chemical product not elsewhere specified. - Similarly, PPG 1010 and PPG 2020 were not hit by the mischief of Note 2(c) and were also appropriately classifiable under heading 38.01/19(1). 2. Applicability of Additional Duty under the Central Excises and Salt Act, 1944: Facts and Arguments: - There was no dispute regarding the levy of additional duty in the Premier Tyres cases, as the Central Government's review notice explicitly stated that the goods did not fall under item No. 15-A of the CET. - In the Dai-Ichi-Karkaria cases, the goods were charged to additional duty under item No. 68 CET, but the review show cause notice did not propose any review regarding additional duty. Tribunal's Findings: - The Tribunal did not find it necessary to delve into the issue of additional duty as the primary dispute was regarding the classification under the CTA, 1975, for the levy of basic Customs duty. - The Tribunal upheld the classification under heading 38.01/19(1) for both PEG 300 and PPG 1010 and PPG 2020, thus rendering the issue of additional duty moot in this context. Conclusion: The Tribunal rejected the appeals, holding that PEG 300, PPG 1010, and PPG 2020 were not classifiable under heading 39.01/06 of the CTA, 1975, but were appropriately classifiable under heading 38.01/19(1) as miscellaneous chemical products not elsewhere specified. The issue of additional duty was not considered relevant to the primary classification dispute.
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