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Issues: Classification of imported goods under a specific tariff entry and eligibility for notification benefits.
In this case, the appellants imported "brimstone 90" and claimed classification under heading 25.03 along with the benefit of Notification No. 11/97-Cus., dated 1-3-1997 at serial No. 19. The Assistant Commissioner accepted the classification but denied the benefit of the notification, interpreting "crude and unrefined sulphur" to mean sulphur not subjected to any chemical process. The Commissioner (Appeals) upheld this decision after considering the manufacturer's literature, stating that the contested goods, a product of mixing clay with molten sulphur, did not qualify as "crude or unrefined." The key issue was whether the goods qualified for the notification's benefits under the relevant entry, which covered "Crude or unrefined sulphur" under heading 25.03. The lower authorities held that the phrase "crude or unrefined" applied only to sulphur not subjected to other processes, and the tariff entry description could encompass both refined and unrefined sulphur. The sub-notes to the tariff entry in the Harmonized System of Nomenclature (HSN) clarified the scope of goods falling under it, mentioning recovered unrefined sulphurs from various processes. The origin of the sulphur used in the contested product was from a refinery, obtained as a by-product from sour natural gas. The claim that this sulphur was unrefined at the molten stage was supported by the literature and the HSN sub-notes. The argument raised was whether blending the unrefined sulphur with bentonite clay would alter its nature. Elemental sulphur, used as a fertilizer, needs to be oxidized before plant absorption, with oxidization rate depending on particle size. To facilitate safe application, sulphur is mixed with bentonite clay, which does not change the chemical properties of the sulphur particles. Even in this mixture, the sulphur retains its classification as unrefined, especially when originating from refinery processing natural gas as a by-product. Chemical examinations confirmed the presence of 10% inert filler in the contested goods, supporting their classification under the relevant entry of the notification. The judgment concluded that the contested goods qualified for the benefits under the notification, allowing the appeal with consequential relief.
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