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Classification of product under Customs Tariff Act, 1975 and applicability of customs Notification No. 196/84 dated 7-7-1984. Detailed Analysis: Issue 1: Classification of Product and Applicability of Customs Notification The appeals involved a product named "XLPE compound HFDM-0595-BK" imported by the appellants, classified under Heading 39.01/06 of the Customs Tariff Act, 1975. The dispute centered around the applicability of customs Notification No. 196/84 dated 7-7-1984. The appellants argued for the notification's application, while the Revenue contested it. The lower authorities determined that the product was for semi-conductive shielding of power cables, not for insulation, impregnation, or filling purposes, thus ruling out the notification's applicability. Issue 2: Interpretation of Notification and Manufacturer's Literature The notification exempted cable insulating, impregnating, and filling compounds from excess customs duty. The appellants presented manufacturer's literature describing the product as a crosslinkable polyethylene copolymer for semi-conductive shielding of power cables. They argued that the product's use was for insulation based on the literature's content. Reference was made to industry handbooks and chemical technology encyclopedias to support the contention that the product was suitable for insulation purposes. Issue 3: Arguments and Counterarguments The appellants emphasized that the product possessed the necessary properties for insulation, while the Revenue contended that the product, being cross-linkable and not cross-linked, was unsuitable for insulation at the time of import. The debate revolved around whether the product met the criteria for insulation compounds as per industry standards and chemical compositions. The Revenue highlighted distinctions between semi-conductor applications and commercial power cable insulation. Judgment and Conclusion: After considering the contentions and evidence, the Tribunal found that the subject product was indeed a cable insulating compound eligible for the benefits of the customs notification. The product's description, application in insulation shielding, and formulation for cable use led to the conclusion that it fell within the scope of the notification. Consequently, the impugned order was set aside, and the appeals were allowed in favor of the appellants, granting them consequential relief. This detailed analysis highlights the key issues, arguments, interpretations, and the ultimate decision rendered by the Appellate Tribunal in the case.
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