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Classification of fluorescent powders under Indian Customs and Central Excise Tariff - whether under item No. 28 or item No. 30. Analysis: The judgment revolves around the classification of fluorescent powders under the Indian Customs and Central Excise Tariff. The petitioners, manufacturers of fluorescent tube lamps, imported fluorescent powder and contended that it falls under item No. 28, while the respondent argued that it falls under item No. 30. The Central Electro Chemical Research Institute confirmed that the chemicals in fluorescent powders are not paints but special chemicals used for specific purposes under ultra-violet radiation. The court analyzed the definitions of 'paints' and 'pigments' from various sources like dictionaries and customs council notes to establish that the substance in question did not qualify as paint due to its colorless nature and specific usage in fluorescent lighting tubes. The court rejected the respondent's claim that fluorescent powders are special pigments related to paint technology, emphasizing that the substance did not meet the common understanding of paint used for protection or decoration. Ultimately, the court allowed the writ petitions, ruling in favor of the petitioners and classifying the fluorescent powders under item No. 28 of the tariff. The key point of contention was whether the fluorescent powders should be classified as chemicals under item No. 28 or as paints under item No. 30 of the Indian Customs and Central Excise Tariff. The court relied on expert opinions and definitions to determine that the fluorescent powders were indeed special chemicals used in fluorescent lighting tubes, distinct from traditional paints or pigments. The court highlighted that the substance's unique properties, such as being colorless and requiring specific conditions for illumination, differentiated it from conventional paints used for protective or decorative purposes. By analyzing various references and industry sources, the court established that the substance in question did not align with the characteristics of paints as commonly understood, leading to the classification under item No. 28 as chemicals rather than item No. 30 as paints. Furthermore, the judgment addressed the respondent's argument that the Revenue's classification decision should not be interfered with when an item could reasonably fall under two categories. The court rejected this argument, emphasizing that the term 'chemicals' had a broad scope and that substances needed to align with specific classifications rather than being categorized under the general heading of chemicals. The court concluded that the principle of dual classification did not apply in this case, as the fluorescent powders were distinct chemicals used for a specialized purpose, warranting their classification under item No. 28. As a result, the court allowed the writ petitions in favor of the petitioners, without imposing any costs, based on the classification of the fluorescent powders as chemicals under the Indian Customs and Central Excise Tariff.
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