2011 (4) TMI 1179 - AT - Customs

Benefit of Customs Notification No. 21/2002 dated 1.3.2002 (Sr. No. 480) - whether available to the goods imported by the respondent i.e.Vinnolit SA 1062/7 (Polymer of Vinyl Chloride) imported vide Bill of Entry No. 673027 dated 17.1.2006 - whether this copolymer can be called a polymer of vinyl chloride? - Held that - As per the description of goods against the main heading 3904, which reads thus Polymers of vinyl chloride or of other halogenated olefins, in primary forms - Thus, the vinyl acetate is a halogenated olefin - Therefore, the copolymer of vinyl chloride and vinyl acetate must fall under the broad category of polymers of vinyl chloride as mentioned in the first part of the description of goods against Heading 3904 - the goods imported by the respondent can be regarded as a polymer of vinyl chloride for all purposes of heading 3904 - The item answers the description of goods at Sr. No. 480 of the Table annexed to Notification No. 21/2002-Cus and is eligible for the benefit of the Notification - Decided in favour of assessee.

Summary

Issues:
1. Benefit of Customs Notification No. 21/2002 availability for imported goods.
2. Classification of copolymer of vinyl chloride and vinyl acetate.
3. Interpretation of Tariff entry CTH 3904 regarding copolymers.

Analysis:
1. The appeal raised the issue of whether the benefit of Customs Notification No. 21/2002 dated 1.3.2002 was applicable to goods imported by the respondent. The respondent claimed the benefit for the imported goods Vinnolit SA 1062/7, but duty was paid at the normal rate. The appellate authority directed re-assessment by granting the benefit of the Notification, leading to the department's appeal.

2. The classification of the imported copolymer of vinyl chloride and vinyl acetate was examined. The goods were classified under CTH 3904, and it was established that the copolymer contained 93% vinyl chloride and 7% vinyl acetate. The debate centered on whether this copolymer could be considered a polymer of vinyl chloride. The Tribunal analyzed the Tariff entry, Chapter Note 4, and the description of goods against Heading 3904 to conclude that the copolymer fell under the category of polymers of vinyl chloride.

3. The interpretation of Tariff entry CTH 3904 regarding copolymers was crucial. The Tribunal noted that the copolymer of vinyl chloride and vinyl acetate met the criteria of a copolymer as per Chapter Note 4. By analyzing the description of goods against Heading 3904, it was determined that the copolymer could be considered a polymer of vinyl chloride for all purposes of the heading, making it eligible for the benefit of the Notification. Consequently, the impugned order was upheld, and the appeal was dismissed.