9911796707
TMI Blog1990 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved that identical goods had been imported through Bombay port during the relevant period at substantially higher prices of U.S. $ 1880 to 1990 per M.T. cif. The goods, on test, were found to be a copolymer of styrene containing styrene monomer to the extent of 87.5%. It, therefore, appeared to the Customs authorities that the goods were classifiable under Heading No. 3903.90 of the Schedule attracting duty (under the Schedule) at 100% + 30% (auxiliary) and 40% (additional) in terms of Sl. No. 12 of Notification No. 88/87-Customs dated 1-3-1987 read with Notification No. 162/88-Customs dated 13-5-1988 and Central Excise Notification No. 53/88 dated 1-3-1988 instead of at 15% (under the Schedule) + 30% (auxiliary) + 20% (additional) as claimed. Accordingly, a show cause notice was issued to the appellants and, in due course, the Additional Collector of Customs passed an order classifying the goods under Heading No. 3903.90 of the Schedule, and 3903.90 of the Central Excise Tariff Schedule ( CET , for short) at the higher rates of duty (as indicated above). He also ordered that the assessable value of the goods should be determined on the basis of a price of US $ 1850 per M.T. ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st reports at pages 28 and 29 of the appellants paper book would show that the samples had the characteristics of polystyrene polymer. The further note of the Chemical Examiner would show that the styrene monomer content was around (about)87.57%. That is to say, it was not an exact determination. In this context, Shri Sogani drew our attention to the minutes of the Tariff Conference of Collectors of Customs held at Mangalore on the 5th and 6th April, 1989 (pages 72-75 of the paper book). The relevant part of the minutes reads as follows :- The Conference thereafter examined the practicability of ascertaining the differences between the Homo-Polymer and Co-Polymer by chemical analysis. The view (sic) of the Chief Chemist which were obtained in the matter was placed before the Conference. The Chief Chemist had indicated that the estimation of the Butadiene content in HIPS can be done by infra-red spectral analysis provided samples of known compositions are available. That is to say standard samples of known compositions of individual Comonomers would be required. Conventional methods are also reported in literature for determination of Butadiene content, in the Co-Polymers and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws :- HANNAM POLYSTYRENE HI: High impact grades of Hannam Polystyrene are graft Co-polymers of styrene monomer and synthetic rubber and their original colour is transniucent milky white. They have high impact and flexural strengths and beautiful products can be obtained due to their brilliant gloss and fine color tone. HI-425-Easy flow and high impact type". The remarks in the test report read as follows :- An estimation of styrene content in the extracted sample reveals that the styrene - Monomer content is around 87.5% by weight taking into consideration the rubber portion as Polybutadiene. (Ref. Identification Estimation of natural Synthetic Rubbers - Ministry of Supply Admirality.) In the light of above the sample u/r may be regarded as Co-polymer of styrene containing less than 95% Styrene Monomer. (The test-report may be ammended to read Polystyrene Copolymer instead of Polystyrene Polymer as reported earlier in the T.M.)" In the second test report, the relevant portion reads as follows :- It also reveals that the sample contains about 87% by weight of styrene monomer calculated on the basis of Iodine value of unsaturated component of the polymer taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e product literature, it is a graft co-polymer of styrene monomer and synthetic rubber. It is, therefore, apparent that it is not a homopolymer (i.e. a polymer consisting of the same monomer). For the purpose of Chapter 39 of the Schedule, a co-polymer is a polymer in which no single monomer contributes 95% or more by weight to the total polymer content (Chapter note 4). Thus, the product is a copolymer for the purpose of Chapter 39. In accordance with the same Chapter note, co-polymers, including graft polymers and polymer blends are to be classified in the heading covering polymers of that comonomer which predominates by weight over every other single monomer. The subject product, whether it is regarded as a copolymer or a graft copolymer, will be classifiable as a polymer of styrene which predominates by weight. Thus it falls under Heading 39.03. 10.1 In determining the sub-heading under which the goods are classifiable, the sub-heading note in Chapter 39 which like the main notes in the chapter has legal force, has also to be kept in view. This sub-heading note is re-produced below :- Within any one heading of this Chapter, copolymers (including copoly-condensates, co-poly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 42/76-Cus-toms dated 2-8-1976 which extends a concessional rate of basic duty of Customs (50% of the standard rate of basic duty as modified by any exemption Notification in force) to polystyrene, among other goods, of Republic of Korean origin. It appears that this claim had not been made before the lower authority. Be that as it may, if the goods conform to the requirements laid down in the said Notification, the appellants will be entitled to the benefit of the concessional rate of duty. But this matter will have to be looked into by the lower authority. However, it is clear from the relevant entry in the Notification reading :- Polymerisation and Copolymerisation products (for example................... polystyrene ........) that both polystyrene polymers and poly styrene copolymers are covered by the entry." 13. Now, we turn to the aspect of valuation of the goods. We see force in the appellants contention that though the goods imported at Bombay and Calcutta were comparable, the fact that the Bombay imports were of supplies made by a Hongkong party whereas in the instant case, the supplies were made by a Korean party would make for difference in prices. (The goods in b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the appellants, if not lower. 14. The Additional Collector has, in determining the assessable value of the subject goods at 1850 $ per tonne, invoked Rule 11 of the Valuation Rules read with Section 14(1) of the Customs Act 1962. The submission of Shri Sogani is that whether Section 14(1) of the Customs Act or the Valuation Rules is adopted as the basis, there is no justification for ignoring the invoice price of 1485 $ per tonne whereas Shri Chandrasekharan justifies the action of the Collector. 15. Section 14( 1) of the Customs Act provides that for the purposes of the Customs Tariff Act, 1975, or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation in the course of international trade, where the seller and buyer has no interest in the business of each other and the price is the sole consideration for the sale or offer for sale. In the present instance there is no allegation that the seller and buyer are related persons or that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
