1990 (2) TMI 158 - AT - Customs

Summary

Issues:
Classification of imported substance under Customs Tariff Act - Whether substance should be classified under Heading No. 3301.30 or 1301.90.

Analysis:
The case involved a departmental appeal against the Order-in-Appeal passed by the Collector of Customs (Appeals) Calcutta. The respondents imported a consignment of "Storax Prepared BP 1883" which was initially classified under Heading No. 3301.30 of the Customs Tariff Act. The respondents claimed a refund of duty, arguing that the substance should be classified under Heading No. 1301.90 as prepared storax was considered purified balsam. The Collector (Appeals) allowed the claim, stating that prepared storax was used in the manufacture of a specific drug and not as a resinoid. The Collector of Customs filed the present appeal challenging this decision.

The main contention in the appeal was that the substance imported was a purified form of Storax Prepared, which should be classified under Heading No. 13.02 when in crude form, but as a resinoid when purified. The appellant argued that only crude balsam falls under Chapter 13, while the imported substance falls under Heading No. 3301.30 as a prepared resin.

The respondents argued that the imported substance, purified balsam, was used for manufacturing a specific drug, relying on references from authoritative sources. They contended that prepared storax was different from resinoid, as it was obtained by alcohol extraction and used in medicines, not perfumery. They emphasized that Chapter 13 of the Customs Tariff was more specific for the substance in question.

After considering the submissions and perusing the record, the Tribunal examined the test reports and references provided. The Central Drugs Laboratory's report confirmed that the substance was purified storax, complying with the required standards. The Tribunal noted that prepared storax fell under the category of balsams, which were covered under Heading 13.01 of the Customs Tariff. There was no evidence to suggest that the substance had undergone processing to be classified as a resinoid under Heading 33.01. Therefore, the Tribunal concluded that the substance should be classified under Heading 1301.90 as purified balsam and dismissed the appeal.

In conclusion, the Tribunal upheld the decision of the Collector (Appeals) and dismissed the appeal, ruling in favor of classifying the imported substance as purified balsam under Heading 1301.90 of the Customs Tariff Act.