1987 (10) TMI 266 - AT - Customs

Summary

Issues:
- Interpretation of Notification No. 342/76 for duty refund claim on imported printed PVC sheets.
- Determining whether printed PVC sheets fall under Entry No. 6(1)(c) of the notification.
- Analysis of relevant tariff heading and chapter notes for classification of imported PVC sheets.

Issue 1: Interpretation of Notification No. 342/76
The case involved an appeal by the Collector of Customs against the order of the Collector of Customs (Appeals) regarding a duty refund claim on imported printed PVC sheets under Notification No. 342/76. The respondents imported the sheets and claimed a refund of duty paid in excess of the exempted rate. The Assistant Collector rejected the claim due to the absence of a proper certificate of country of origin and considering PVC sheets as manufactured articles from polymerisation. However, the Collector (Appeals) accepted the claim, stating that the necessary certificate was filed correctly and the sheets fell under the description eligible for the notification.

Issue 2: Classification under Entry No. 6(1)(c) of the Notification
The appeal by the Collector of Customs contended that printed PVC sheets did not fall under Entry No. 6(1)(c) of the notification, which specifically covered polyvinyl chloride in primary forms only. The argument was based on the manufacturing process of PVC sheets involving the addition of plasticizers, stabilizers, and dyestuff to PVC resin, making them finished goods rather than raw material. The contention was that the notification did not cover articles like printed PVC sheets manufactured from compounded PVC.

Issue 3: Analysis of Tariff Heading and Chapter Notes
The respondents argued that the imported PVC sheets were covered under Tariff Item 39.01/06, which included PVC in various forms, including sheets. They referenced Note 3 of Chapter 39, stating that plates, sheets, films, foil, and strip fell under this category. The respondents emphasized that the sheets were assessed under T.I. 39.01/06 and should be considered falling under the category of PVC "Other forms" as per the notification. They highlighted that the sheets were tested and described as PVC, meeting the description under the tariff heading. The Tribunal agreed with the respondents, rejecting the appeal and affirming that the sheets fell under the category of PVC "Other forms" under the notification.

In conclusion, the Tribunal upheld the lower authority's decision, ruling in favor of the respondents based on the classification of the imported printed PVC sheets under the relevant tariff heading and chapter notes, thereby entitling them to the duty refund as per Notification No. 342/76.