1990 (5) TMI 120 - AT - Customs

Summary

Issues:
1. Classification of block copolymers under Notification 227/76.
2. Eligibility of VESTOLEN. P products for exemption under the notification.

Issue 1: Classification of block copolymers under Notification 227/76:
The appeal challenged the order classifying VESTOLEN. P 6522 Grey and VESTOLEN. P 6502 block as ineligible for exemption under Notification 227/76 due to being block copolymers under Chapter 39 of Customs Tariff Act. The Asstt. Collector classified them under sub-heading 3902.30, distinct from polypropylene. The Collector (Appeals) upheld this classification. The appellants contested the denial of exemption, arguing that the goods are essentially polypropylene and should qualify for the exemption. They cited literature showing VESTOLEN. P as a brand name for polypropylene, emphasizing the specific nomenclature for homopolymers and copolymers. The appellants relied on precedents like Indian Airlines v. Collector of Customs and ICI (India) v. Collector of Central Excise to support their argument that the notification applies to polypropylene without specifying sub-headings.

Issue 2: Eligibility of VESTOLEN. P products for exemption under Notification 227/76:
The Department contended that the notification exempts homopolymer polypropylene, distinct from copolymers and block polymers, as per Hawlay's Condensed Chemical Dictionary. They argued that a subsequent Notification 521/86 exempted propylene copolymers, supporting their stance. However, the Tribunal analyzed the manufacturer's literature, which marketed VESTOLEN. P as polypropylene, and noted that the goods were classified under Heading 39.02 of Customs Tariff Act. The Tribunal found that since the goods fell within Chapter 39, were marketed as polypropylene, and were classified under a similar heading as polypropylene, they were eligible for the exemption under Notification 227/76. The Tribunal allowed the appeal, emphasizing the manufacturer's marketing of the goods as polypropylene and their classification under the relevant chapter of the Customs Tariff Act.