1990 (7) TMI 202 - AT - Customs

Summary

Issues:
Classification of the imported product "PARATAC" petroleum additive under Tariff Heading 38.01/19(3) or 39.01/06.

Detailed Analysis:

1. Classification Issue:
The main issue in this appeal was the classification of the imported product "PARATAC" petroleum additive. The importers claimed classification under Tariff Heading 38.01/19(3) for "Anti-knock preparation and prepared additives for mineral oils." However, the goods were assessed under Tariff Heading 39.01/06, which covers various polymer products. The dispute arose because the technical literature described "PARATAC" as an oil solution of high molecular weight polymer, specifically 180 Butylene Polymer. The Assistant Collector classified it under Heading 39.01/06, stating that all polymers are classifiable under this heading. The appellants challenged this classification, leading to the appeal.

2. Legal Arguments:
During the hearing, the learned SDR argued that since the importers themselves described the goods as polyisobutylene, they should be classified under Chapter 39. Additionally, it was contended that the goods should fall under Chapter 39 as they are chemical compounds produced by synthesis and contain polyisobutylene. However, the Tribunal found these arguments unconvincing.

3. Tribunal's Analysis:
The Tribunal carefully examined the technical literature and found that "PARATAC" is a tackiness agent used in the production of oils and greases, containing a high molecular weight isobutylene polymer. The supplier's specifications confirmed that "PARATAC" is a mixture of polyisobutylene and a specially prepared oil, with polyisobutylene content ranging from 4 to 10%. The Tribunal noted that the imported product was in a solid state but dissolved in an oily solution, not as liquid polyisobutylene covered under Chapter 39. Therefore, the Tribunal concluded that "PARATAC" should be classified under Chapter 38 as a prepared additive for mineral oils, specifically under Heading 38.01/19(3).

4. Judgment and Relief:
In light of the above analysis, the Tribunal held that "PARATAC" is classifiable under Heading 38.01/19(3) of the Customs Tariff. Consequently, the impugned order was set aside, and the appeal was allowed. The appellants were granted the consequential relief of a refund of duty paid at the higher rate.