1996 (1) TMI 189 - AT - Customs

Summary

Issues: Classification of acrylonitrile under Customs Tariff Heading 5503.30 against Heading 2926.10 claimed by the appellants.

In this case, the appellants challenged the classification of acrylonitrile by the Collector of Customs (Appeals), New Delhi, under Customs Tariff Heading 5503.30 instead of Heading 2926.10 as claimed by them. The appellants argued that acrylonitrile, whether in wet or fibre form, is a chemically defined organic compound used in the pharmaceutical industry for manufacturing drug intermediates. They contended that the product's use in pharmaceuticals distinguished it from textile industry fibres. The appellants emphasized that the classification should be based on the product's inherent qualities and properties, not solely on its fibrous nature. They also criticized the authorities for not considering the evidence provided by the appellants, such as the Overseas Supplier's Product Literature, which detailed the properties of the imported material. The appellants highlighted that the reliance on HSN Notes by the authorities was improper and that the burden of proof for classification rested with the Revenue. The appellants further argued that the authorities had misinterpreted the nature of acrylonitrile and failed to adequately consider the product's characteristics. The Tribunal noted the lack of notice given to the appellants regarding certain evidence relied upon by the authorities and the vague nature of the Test Report, which mentioned both "fibre" and "acrylonitrile." The Tribunal concluded that the impugned order was flawed and remanded the matter to the Adjudicating Authority for a fresh decision, instructing them to disclose all evidence to the appellants and allow for a fair hearing. The appellants were granted the opportunity to present additional evidence to support their case. The Tribunal emphasized the need for an expeditious resolution of the matter upon remand.