9911796707
TMI Blog1999 (1) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... r is classifiable under Heading 35.06 of the CTA as suggested by the Revenue. 2. Briefly stated the facts are that the respondents are registered with DGTD for the manufacture of deflection components. They filed a Bill of Entry No. 4860, dated 11-2-1993 for the clearance of Polyamide/Resin adhesive (prepared adhesive) U.K. Amide 1045 classifying them under sub-heading 3908.10 of CTA read with Notification No. 172/92-Cus. (Sl. No. 88). The Assistant Collector classified the product under Heading 35.06 relying upon Explanatory Notes of HSN and the test report of the Dy. Chief Chemist who had opined that the imported goods merited to be considered as prepared adhesive/glue based on plastics. However, Collector (Appeals) classified the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 39 contain other added substances not falling in that chapter are treated as prepared adhesive under Heading 35.06. The learned DR also mentioned that according to the product literature of UK AMIDE 1045, the principal component is polyamide resin which suggests that polyamide is not sole component and there are some other substances which when added to polyamide resin result in adhesives; that literature further mentions that product is specially formulated for the use as adhesive. He also mentioned that goods cannot be classified based on these usage, they have to be classified based on their material composition. Finally he relied upon the decision in the case of Collector of Customs v. East West Exporter, [1991 (52) E.L.T. 66] w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re required for the purpose mentioned in Column 4 of the Tables; that Department of Electronics, under certificate dated 2-3-1993, recommended grant of duty concession to the under Notification No. 172/92 as they held delicensed registration for the manufacture of deflection components. He contended that once the required certificate has been produced from the competent authority, the Department has to honour the same. He referred to the decision in Collector of Customs v. Pecific Exports [1998 (99) E.L.T. 488 (S.C.)] wherein the Supreme Court remanded the matter to the Appellate Tribunal so that respondent therein could adduce evidence to show that the goods imported were meant for specific use. He mentioned that in the present matter he h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscuits (P) Ltd. [1998 (97) E.L.T. 321] in which Tribunal held that notification has to be construed in accordance with the purpose of the notification. He finally submitted that the notification very clearly states that the imported item should be used for the manufacture of Deflection Components and end use by them is for the manufacture of said product only and as such benefit of notification should be extended to them. 6. We have gone through the submissions of both the sides. Heading No. 39.08 of the Customs Tariff Act is applicable to `Polyamides in Primary form . The primary form has been defined in Note 6 to Chapter 39 as under :- 6. In Heading Nos. 39.01 to 39.14, the expression Primary forms" applies only to the following fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is seen from the technical books that the composition of this type of material based on polyamide are used as adhesive..... Though it has got multiple usage in diverse fields, the main function is only for bonding/gluing/sealing on the substance or otherwise. Therefore, the goods under reference merit to be considered as prepared adhesive/glue based on plastics. The respondents have not brought on record any test report to show what they imported was in primary form. The impugned goods are, thus, rightly classifiable under Heading 35.06 of CTA. The same was the view of the Appellate Tribunal in the case of Collector of Customs v. East West Exporters, supra. Once the product is classified in Chapter 35, the benefit of Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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