9911796707
TMI Blog1988 (3) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... leas in respect of reassessment of the goods. He drew our attention to the reasoning given by the Assistant Collector and which was adopted by the Collector (Appeals). The findings of the Assistant Collector for convenience of reference are reproduced below : As per the Bayer s preliminary leaflet furnished by the claimants the material .in question,viz., Desmophen 7186(B) (Polyether polyol) is a trifunctional polyether based on propyleneoxide. It could be seen from the CCCN Explanatory Notes under sub-chapter E under chapter 39.01 that polyethers based on polyoxy propylene (propylene oxide) are classified under chapter 39.01(E)(4) under Certain other polycondensation and poly addition products". Chapter Note (2)(c) under chapter 39 states (C) Resols, liquid polyaddition products". Since, as shown above, polyethers are grouped under 39.01 (E) certain other polycondensation and polyaddition products , the contention that similar artificial polycondensation or polymerisation products in chapter note 2(c) refers to only Resols and liquid polyisobutylene is not correct. As regards the contention that the goods are not artificial plastic material and hence are not covered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Polyurethane in the Condensed Chemical Dictionary Tenth Edition-Revised by Gessner G. Hawley which is reproduced below : A Thermoplastic polymer (which can be made thermosetting) produced by the condensation reaction of a polyisocyanate and a hydroxyl-containing material e.g. a polyol derived from propylene oxide or trichlorobutylene oxide. The basis polymer unit is formed as follows: R1NCO+R2 OB - Rl NHCOOR2. A polyether such as polypropylene glycol is treated with a diisocyanate in the presence of some water and a catalyst (amines, tin soaps, organic tin compounds). As the polymer forms, the water reacts with isocyanate groups to cause cross linking, and also produces carbon dioxide which causes foaming. In other cases trifluoromethance or similar volatile material may be used as blowing agent. He stated that so far as resols mentioned under 39.01/06 CTA and 15A CET are concerned, resols itself is described as a resin and polyisobutylene is also thermoplastic polymer. He stated that the goods imported by them were neither resin nor thermoplastic polymer commonly known as synthetic rubber. He pleaded that the product imported is not similar to resols and polyisobutylene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... At this stage the product is fully soluble in one or more common solvents (alcohols, ketones) and is fusible at temperatures below 150 C. On further heating and without use of a catalyst or additive, the resin is eventually concerted to the insoluble, infusible cross-linked form (C-Stage). The A-Stage resin is a constituent of most commercial laminating varnishes, and is also used in special moulding powders. Polyisobutylene against Polybutylene reads as under : (Polybutene, polyisobutylene, polyisobutene) Any of several thermoplastic isotatic (stereo regular) polymers of isobutene of varying molecular weight; also polymers of butene-1 and butene-2. Butyl rubber (q.v.) is a type polyisobutene to which has been added about 2% of isoprene, which provides sulfar linkage sites for vulcanization. Isobutene can be in chains containing from 10 to 1000 units, the viscosity increasing with molecular weight. It is combustible and essentially non-toxic. It is seen from the above that both these products lend themselves to further polymerisation resulting in the products which are different in character and use on their further getting polymerised. The appellants product as shown in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fall under the mischief of 2(c) of the Explanation to the Tariff Item. The appellants advocate took the objection that the items covered in the chapter to heading 39.01 of CCCN covers polyether based on polyoxy propylene but the appellants products are based on polyoxide and two are different entities. It is seen from the Condensed Chemical Dictionary that propylene oxide has been described as under : 40th highest-volume chemical produced in US (1979). Properties : Colorless liquid, ethereal odor. Sp.gr.0.8304 at 20/20 C; b.g.33.9"; vapor pressure 445 mm(20 C) flash point - 35 F(-37.2 C); wt 6.9ibgal (20 C); Freezing point -104.4 C; partially soluble in water; soluble in alcohol and ether. Derivation : (l)Chlorohydration of propylene, followed by saponification with lime; (2) peroxidation of propylene; (3) expoxidation of propylene by a hydroperoxide complex with molybdenum catalyst. Containers; Drums, tank car. Hazard: High flammable, dangerous fire risk; explosive limits in air 2 to 22%. Tolerance 20ppm in air; Moderately toxic and irritant. Uses: Polyols for urethane foams; propylene glycols; surfactants and detergents; isopropanol amines; fumigant; synthetic lub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned as one category of the items. In the CTA there is no specific mention of the products covered. It is seen that the items described in the CCCN under 39.01 are under group headings Phenoplasts; Aminopiasts, Alkyd resins; Expoxide resins and Silicones and other polycondensation and polyaddition products . In respect of these no mention -is there that these products are like resol or polyisobutylene. In fact, resols are covered under 39.01 under group heading phenoplasts at page 573. Liquid isobutylene is covered under Chapter 39.02 under the Group Heading Polyisobutylene .. Therefore answer to the question as to whether the goods imported by the appellants are similar to resol or polyisobutylene cannot be found from the rationale of the description of the items in the CCCN since polyether of the type imported are specified under 39.01. So far as the CCCN is concerned, Polyisobutylene falls under 39.02. So far as Customs Tariff however is concerned an answer to the issues before us has to be found as to the commonality of the characteristic of the goods imported, with those of resole and polyisobutylene. Resols, as is seen from the technical books and also CCCN, belong to the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Chicago vs Vaccarro, 97 NE 2a 766, 773, 408 III 587; Syam Das V. Financial Commissioner, A.I.R. 1973 Punj. 50 52) The word similar may be said to be a word of ambiguous import in the sense that the mere stipulation in a statute that something should be done similarly is insufficient by itself to signify the degree of similarity with which that thing must be done. A thing can be done similarly without its being slavish copy of the model (Commissioner of Income-tax v. T.V.S.I. and Sons, A.I.R. 1976 SC 255 at 2 0)." The entry 39.01 and 15A CET cover a wide range of products under the category of resin and plastic and polycondensation and polymerisation products etc. word Similar in the context of the tariff entry, cannot be read as being identical and degree of similarity has to be in respect of the commonality of characteristics with the examples of materials given. As we have stated the degree of similarity between resols and polyisobutylene is in respect of two characteristics as set out above. The other product to be similar therefore firstly should be polycondensation, polyaddition; polymerisation; (2) these should be resinuous in character; (3) these should be capa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merised product were not resinous in character, and these could not be considered similar to resols and polyisobutylene. This case was not brought to the notice of the Bench by either side. It has been conceded by the appellants Consultant that the goods are polymerised product and can be further formed into plastic product namely polyurethane. Thus, it is seen, it is amenable to further polymerisation. The product imported is a polyether manufactured from propylene oxide as the base material and therefore as set out above, belongs to the category of polyoxy propylene group. This item as it is seen is covered under 39.01 of the CCCN. Item 39.01 and 15A CET though are based on the scheme of the CCCN and Chapter note 2 of Chapter 39 of the CCCN is similar to the note in Chapter 39 of CTA and the explanation appended to item 15A(1) CET yet in the absence of any specific list of goods mentioned In the CTA, merely because the goods answer to a description of the goods in corresponding heading in the CCCN, cannot be the basis by itself for asessment of the goods under 39.01/06 CTA and 15A(1) CET. The goods must satisfy the criteria as set out by us above and as held by the Tribunal in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
