1988 (6) TMI 291 - AT - Central Excise

Summary

Issues: Classification of final product "Vincol" under Tariff Item 15A or 68 CET.

Analysis:
1. The main issue in this appeal is the classification of the final product "Vincol" under Tariff Item 15A or 68 CET. The appellant contends that the product should fall under Tariff Item 15A(1)(ii) as a modified polyvinyl acetate resin. On the other hand, the respondent argues that the product is a Synthetic resins glue used for adhesion and should be classified under Tariff Item 68.

2. The appellant relies on the argument that the product is a derivative of polyvinyl acetate and should be considered under Tariff Item 15A(1)(ii). The appellant points out that polyvinyl alcohol, used in the production of "Vincol," is a derivative of polyvinyl acetate due to their identical fundamental structure. The appellant argues that despite the physical process of mixing polyvinyl acetate with polyvinyl alcohol, the end product remains a derivative of polyvinyl acetate.

3. In contrast, the respondent asserts that the product is known in the market as a Synthetic resins glue and is used solely for adhesion purposes. The respondent cites a previous Tribunal decision involving a similar adhesive product, Navisol, to support the classification of "Vincol" under Tariff Item 68. The respondent contends that the uses and market recognition of the product align with those of synthetic resins classified under Tariff Item 68.

4. The Tribunal carefully considers the arguments presented by both parties and finds the decision in the case of Nevichem Synthetic Industries to be a more direct authority for the classification of the product "Vincol." Based on the similarity between the products and their uses, the Tribunal rules that "Vincol" should be classified under Tariff Item 68. Consequently, the appeal is dismissed, and the impugned order classifying the product under Tariff Item 68 is upheld.

5. The Tribunal's decision is primarily based on the classification principles derived from previous case law and the specific characteristics and uses of the product in question. The classification of "Vincol" under Tariff Item 68 is deemed appropriate, considering its nature as a Synthetic resins glue used for adhesion purposes, aligning it more closely with products classified under that tariff item.