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TMI Blog1990 (11) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... s classifiable under Heading 2929.10 of CTA, 1985 was rejected by the Assistant Collector of Customs and held that item was classifiable under Heading 3909.50 on the ground that these two items imported by them are for the manufacture of Polyurethane. In appeal, the Collector of Customs (Appeals), Bombay, has confirmed the order passed by the Assistant Collector of Customs observing that these two items had been imported in the same container though packed separately as they were imported for the purpose of manufacture of Polyurethane. The classification was in conformity with the terms of Section Note 3 to Section VI and Note-1 to Section VII of the Customs Tariff. Aggrieved by the findings given by the authorities below, the appellants have come before us by way of these two appeals. 4. We have heard Shri Sanjay Grover, learned Advocate for the appellants and Shri V. Chandersekharan, learned SDR for the respondent. 5. Shri Sanjay Grover, appearing for the appellants, submitted that there is no dispute in respect of item POLYOL, but dispute in respect of classification of Isocyanate pertains to basic duty and not rate or quantum of auxiliary and additional duties. He contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m in question squarely falls under the Tariff Heading 3909.50 and Chapter 39 in terms of Note 1 to Section VII of the Tariff. He drew our attention to Exhibit IX, i.e. extract from the Condensed Chemical Dictionary - 10th. Edition by Gessner G. Hawley which describes about making of polyurethane foams as under :- Solid Polyurethane plastic is the result of a chemical reaction between two liquid components, a di-isocyanate and a compound containing active hydrogen" groups usually referred to as the resin or the polyol . Many compounds fit this description and each one will create a solid polyurethane somewhat different from the others. The chemistry is described in more detail in the publication PU161-3E. The production of rigid polyurethane foam is industry. However, no foam will result unless the reacting polyol/isocyanate mixture is simultaneously expanded by gas generation. This was first achieved by the reaction of isocyanate with water to generate carbon dioxide (C02). Although this method is still practised, more foams - especially for insulating purpose - are how also blown with low boiling halogenated alkanes. Whatever the details of the chemistry, the reaction bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of Polyurethane, the Isocyanate should be classifiable under Chapter 39 of the Tariff in terms of Note 1 to Section VII of the Customs Tariff. The relevant provision of Note 1 of Section VII is reproduced as under :- SECTION VII PLASTICS AND ARTICLES THEREOF : RUBBER AND ARTICLES THEREOF. NOTES 1. Goods put up in sets consisting of two or more separate constituents, some or all of which fall in this Section and are intended tone mixed together to obtain a product of Section VI or VII, are to be classified in the heading appropriate to that product, provided that the constituents are: (a) having regard to the manner in which they are put up, clearly identifiable as being intended to be used together without first being repacked; (b) presented together; and (c) identifiable, whether by their nature or by the relative proportions in which they are present, as being complementary one to another." Sri Sanjay Grover has adduced sufficient evidence and literature to understand the meaning and concept of the imported products in question and their uses as well as constituents of the end product Polyurethane. But though, he vehemently argued that product in question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, there is no dispute with regard to the item Isocyanate being a separate chemically defined organic compound. The appellants have produced the extract from The Condensed Chemical Dictionary , Ninth Edition revised by Gessner G. Hawley to show that the item Isocyanate is a separate chemically defined organic compound. The item Isocyanate is specially covered by Customs Tariff Heading 2929.10. Note 2(b) under Chapter 39 of the Customs Tariff specifically contemplates that the chapter does not include separate chemically defined compounds falling under Chapter 29. Isocyanate is one such compound which is separately and specifically covered by the Heading 2929.10 under Chapter 29. 14. The appellants have contended that the imported items Polyol and Isocyanate are not merely mixed to produce Polyurethane. They have contended that the two items viz. Polyol and Isocyanate are not mixed but they are subject to a process with the help of other items like Catalyst, Cross linking agents, Surfactants, Fire retardants and blowing agents. By appropriate inter-action with various other elements, polyurethane is produced. Referring to Chapter Note 1 Section VII, the appellants have contend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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