9911796707
TMI Blog1997 (11) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... d the goods to be assessable under Tariff Heading 3907.50. The Revenue in appeal against this finding of the ld. lower appellate authority have urged that the goods would be correctly chargeable to duty under Tariff Heading 3907.91. The issue has been discussed by the ld. lower authority in the context of Chapter Notes 5 14 of Chapter 39. 3. The relevant tariff headings are reproduced below for convenience of reference :- Tariff Heading 3907.50 - Alkyd resins including maleic resins and fumeric resins Tariff Heading 3907.91 - Other Polysters Unsaturated 4. The Chapter Notes 5 14 of Chapter 39 are also reproduced below for convenience of reference as under :- 5. Chemically mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that was not to be so in view of Note 14. Now I shall examine the classification of the chemically modified maleic resin with reference to Note 14, which in brief says that the chemically modified polymers are to be classified in the same sub-heading as the unmodified polymer subject to fulfilment of two conditions. The two conditions are that chemically modified polymers are not more specifically covered by any other sub-heading and that there is no residual sub-heading named other in the series of sub-headings concerned. The word and used in the proviso embedded in Note 14 implied that the chemical modified polymer has to fulfil both the conditions specified in the proviso which were narrated above. It is not in doubt that chemically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of maleic resins. Surely, the word `other used in Chapter Note 14 is different from other polysters" used under Chapter Heading 39.07. 7. Thirdly, the Assistant Commissioner s contention that the chemically modified polymers fall under 3907.91 is not in confirmity with what the HSN has to say on the subject of classification of modified polymers. At page 556 of HSN Explanatory Notes it is classified (para 2 to c) I quote Chemically modified polyethers (other than polyacetals) are to be classified in sub-heading 3907.20 because there is neither a more specific sub-heading nor a residual sub-heading `other to cover them . Applying the same logic one can see that maleic resins are covered under Chapter sub-heading 3907.50. Since chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerned which should rightly cover Chemically Modified Maleic Resin . (ii) The Commissioner (Appeals) observation in Para 6 that the product Maleic Resin is not Unsaturated Polyester, has to be examined in the light of the Chemical Examiner s report who reported the goods to be unsaturated polyesters. (iii) The Chapter sub-heading 3907.20 comparison with 3907.50 may not be appropriate in so far as the Chapter sub-heading 3907.20 itself speaks about Other Polyethers . (iv) The Commissioner (Appeals) Hyderabad s observation that the Schedule does not contain a residual sub-heading under sub-heading 3907.50 is incorrect in as much as there cannot be a sub-heading under a sub-heading but only a sub-classification under a sub-heading. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was placed before them. He has pleaded therefore no different view as such could be held now in view of the Tribunal s decision. 10. He has also pleaded that Chapter Note 14 would not come in the way of assessment under the Tariff Heading 3907.91. He has pleaded that the ld. lower Appellate authority has given correct conclusions after taking into consideration the HSN Notes and scope of Tariff Headings 3907.50 and 3907.91 read with Chapter Notes 5 14. 11. We have considered the pleas made by both the sides. We observe that under Chapter Heading (sic) 3907.50 the Maleic Resins are specifically covered. The ld. Original authority has entered a clear finding that but for Chapter Note 14, the appellants goods would get classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by any other sub-heading and that there is no residual sub-heading named Other in the series of sub-headings concerned. 13. So far as the first condition is concerned, the ld. Original authority has also entered a finding that there is no heading specifically covered the respondents goods. However, he has held that under Tariff Heading 3907, there is a Heading 3907.91 - other polyesters in the category of others as set out under Chapter Note 14. We observe what has to be seen is, as held by the ld. lower appellate authority, whether in terms of Note 14 i.e. in the series of sub-heading, there is a category of others mentioned. What it implies is that if under a particular tariff heading, there are sub-headings and if after t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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