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Issues: Classification of imported product under Customs Tariff - Whether the disputed product is correctly classifiable under Heading 3812.20 as contended by the Revenue or under Heading 3403.19 as claimed by the respondent.
Detailed Analysis: 1. Background: The case involves an appeal against the order passed by the Collector of Customs (Appeals) regarding the classification of an imported consignment of Rubber Reclaiming Agent, JACET-350. Initially classified under Heading 3403.19 as a 'Lubricating Preparation,' the Department later demanded differential duty, claiming it should be classified under Heading 3812.30. The Assistant Collector reclassified it under Heading 3812.20, leading to an appeal by the respondent. 2. Revenue's Argument: The Revenue contended that the product should be classified under Heading 3812.20 as a 'Plasticiser' based on manufacturers' literature indicating the presence of chemically active petroleum sulphonate compounds, which are typically found in plasticisers. The Revenue argued that the disputed product falls under this category and not as claimed by the respondent. 3. Respondent's Argument: The respondent argued that the product is meant for use in the rubber reclaiming process, specifically for reclamation of rubber from old mixed rubber scrap. Referring to manufacturers' literature and the Chemical Examiner's opinion, the respondent asserted that the product should be classified as a lubricating agent for rubber processing under Heading 38.03. 4. Examination of Evidence: The Tribunal examined the Chemical Examiner's report, manufacturers' literature, and the purpose of the product. It was noted that the product primarily aids in the rubber reclaiming process by reducing energy consumption and ensuring uniform penetration of oil ingredients in the batch of scrap to be reclaimed, thus enhancing the quality of the reclaimed rubber. 5. Classification Analysis: The Tribunal compared the characteristics of the disputed product with the definition of 'Plasticisers' and noted that plasticisers are used to provide flexibility or plasticity to rubber mix before converting it into products. The product in question, being a de-vulcanising agent for rubber reclamation, was deemed different from plasticisers, as it serves a distinct purpose in the rubber reclaiming process. 6. Decision: Based on the analysis and evidence presented, the Tribunal upheld the Collector (Appeals)'s finding that the disputed product, Rubber Reclaiming Agent JACET-350, should be classified under Heading 3403.19 as a 'Lubricating Preparation.' The appeal by the Revenue was rejected, confirming the classification determined by the Collector (Appeals). This detailed analysis outlines the arguments presented by both parties, the examination of evidence, and the reasoning behind the classification decision made by the Tribunal, emphasizing the distinction between the disputed product and plasticisers based on their intended use and characteristics.
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