1985 (11) TMI 125 - AT - Customs

Summary

Issues:
Classification of imported cellulose powder for levy of additional duty of customs under the Central Excise Tariff Schedule.

Analysis:
The appeals revolved around the classification of "Arbocel FDY 600 Cellulose Powder" for the levy of additional duty of customs. The primary issue was whether the goods should be classified under Item No. 15-A of the Central Excise Tariff Schedule or under Item 68 of the same Schedule as contended by the appellants. The Customs Authorities had assessed the goods under Heading No. 39.01/06 of the Imports Customs Tariff Schedule, while the appellants argued for classification under Chapter 47 of the same Schedule.

The Collector (Appeals) upheld the assessment under Heading 39.01/06 and the levy of additional duty of customs under Item 15A(1), C.E.T. The appellants challenged this decision, arguing that the goods were not synthetic wood pulp but were wrongly classified as regenerated cellulose. They contended that cellulose powder did not meet the criteria of being a "high polymer" as required for classification under the relevant headings.

The appellants relied on various sources, including the Explanatory Notes to the Customs Co-operation Council Nomenclature and the Glossary of Chemical Terms, to support their argument that cellulose powder should be classified differently. They emphasized that the imported goods were not capable of being formed like synthetic resins and plastics, and therefore, should not be classified under the headings chosen by the Customs Authorities.

In response, the Departmental Representative argued that cellulose powder fell under the category of "high polymers" as per the relevant literature and classification opinions. They maintained that the levy of additional duty of customs under Item 15-A(1) of the C.E.T. was correct based on this classification.

After considering the submissions from both sides, the Tribunal analyzed the nature of cellulose as a high polymer based on the literature provided. They noted that cellulose met the criteria of a high polymer as described in various chemical dictionaries. The Tribunal also highlighted the purity and manufacturing process of the imported cellulose powder, indicating that it was processed to a high degree and no longer in its natural form.

Ultimately, the Tribunal concluded that the imported goods should be classified under Heading No. 39.01/06 of the Customs Tariff Schedule and Item No. 15A(1) of the Central Excise Tariff Schedule. They found support for this classification in the Compendium of Classification Opinions published by the Customs Co-operation Council. The appeals were, therefore, rejected based on this classification analysis.