2023 (4) TMI 928 - AT - Customs

Exemption to High Density Polyethylene (HDPE) - Disallowance of benefit of Notification No. 21/2002-Cus. dated 01.03.2022 - Import of High Density Polyethylene Container 2-2.5% Carbon Black - HELD THAT - The issue is squarely covered by the decision of Tribunal in appellant s own case M/S PSL LTD VERSUS COMMISSIONER OF CUSTOMS, KANDLA 2013 (9) TMI 548 - CESTAT MUMBAI , and also in another decision in appellant s own case PSL LIMITED VERSUS COMMISSIONER OF CUSTOMS, KANDLA 2022 (9) TMI 808 - CESTAT AHMEDABAD . Similar decision has also been given in the case of RATNAMANI METAL TUBES LTD. VERSUS CC KANDLA 2013 (8) TMI 851 - CESTAT AHMEDABAD . In Ratnamani Metals and Tubes, the Tribunal observed that In the absence of any support for the conclusion that the product imported by the appellant has been chemically modified or it is not known as HDPE in the market, the benefit of exemption under Sr. No. 477 has to be extended to the appellant. The issue is no longer res integra. The appeal is consequently dismissed.

Summary

Issues involved:
The appeal involves seeking to disallow the benefit of Notification No. 21/2002-Cus. dated 01.03.2022, which grants exemption to High Density Polyethylene (HDPE) imported as High Density Polyethylene Container with 2-2.5% Carbon Black.

Summary:

Issue 1: Benefit of Notification No. 21/2002-Cus. dated 01.03.2022
The appeal filed by Revenue sought to disallow the benefit of the notification granting exemption to High Density Polyethylene (HDPE) imported as High Density Polyethylene Container with 2-2.5% Carbon Black. The Commissioner (Appeals) allowed the benefit of the notification to this product. The Tribunal noted that the issue was covered by previous decisions in the appellant's own case and in another case involving Ratnamani Metal & Tubes Ltd. The Tribunal observed that the addition of carbon black did not result in chemical modification of HDPE, as indicated by the supplier's test certificate. The Tribunal held that the product should be treated as HDPE and extended the benefit of exemption under the notification to the appellant.

Issue 2: Classification of Black Compounded High Density Polyethylene
In a separate case, the appellants imported Black Compounded High Density Polyethylene and claimed classification under a specific subheading for customs duty exemption. The department accepted the classification but denied the benefit of the notification, arguing that it applied to HDPE only, not Black Compounded HDPE. The Tribunal referred to a previous decision in a similar case and reiterated that the addition of carbon black did not chemically modify the HDPE. The Tribunal held that the goods should be treated as HDPE and granted the benefit of the notification, setting aside the department's order-in-appeal.

Conclusion:
The Tribunal found that the issues raised in both cases were no longer res integra, as previous decisions had settled the matter in favor of the appellants. Therefore, the Tribunal dismissed the appeal seeking to disallow the benefit of the notification and allowed the appeals in both cases, granting consequential relief to the appellants.