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TMI Blog2024 (3) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under CTI 3824 9990 as other under the residual entry of other chemical products and preparations of the chemical or allied industries , which is not elsewhere specified or included, residual entry. Further, in terms of the explanation given by the appellants the imported goods are being used in the manufacture of toothpaste, and thus these are not related to chemical or allied industry. Thus, we are of the considered view that for legal purposes, as per GIR-1, the classification of impugned goods under CTI 3207 4000 is appropriate. Classification of plastic pallets - In the present case, the imported goods have been presented along with the plastic pallets as packing containers, and thus there appears to be no requirement for a separate classification in terms of GIR-5 above. Further, the finding in the impugned order that the packing containers in this case are of repetitive use, is also contrary to the facts. In this case, the plastic pallets has been claimed in the impugned order and by original authority as packaging containers for repetitive use and hence are rightly classified separately under CTH 39 23. However, we do not find any document or detail in the Bill of entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted goods, the appellants also imported plastic pellets (containers) required for preventing damage to the imported goods during transit. These pellets are discarded at the port of import before transportation of the imported goods to the appellants factory in the State of Karnataka. During the disputed period viz., February, 2018 to September, 2019, the appellants had classified the imported goods under Customs Tariff Item (CTI) 3207 4000 of the First Schedule to the Customs Tariff Act, 1975, in view of the classification adopted in the domestic, international markets and paid the applicable duty at the time of import. In the post-clearance audit of the import transactions, the department had objected to the classification adopted by the appellants under CTI 3207 and proposed classification under CTH 2853, on the basis of earlier classification adopted by appellants in the past, by issue of consultative letter dated 14.10.2019. The appellants filed their detailed reply by its letter dated 11.11.2019 providing the relevant documents and explanation thereof. Subsequently, the Department had fixed the pre-notice consultation hearing on 20.01.2020. On this the appellants had sought fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemical or allied industries, not elsewhere specified or included. Accordingly, they claimed that classification of impugned goods under CTH 3207 which specifically covers glass frit is appropriate, as it is settled law that specific entry must be given preference over a general entry, by placing reliance on the judgement of the Hon ble Apex Court in the case of Dunlop India Limited Vs. Union of India 1976 (20) SCC 24. 3.2 Learned Advocate also submitted that in terms of CBEC Circular No.3/2012-Customs dated 01.02.2012, it has been clarified that the sub heading 3207 specifically covers glass frit and other glass, in the form of powder, granules or flakes. Further, he also relied upon the decision of this Tribunal in the case of Collector of Customs Central Excise, Rajkot Vs. Parshuram Pottery 2000 (118) E.L.T. 231 (Tribunal) wherein he stated that it has been held by the Tribunal that the classification of glass frit is under CTH 3207. It is also stated by him that packing material containing the imported goods is not to be classified separately unless it gives the imported goods an essential character or these are otherwise clearly suitable for repetitive use. Learned advocate al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2 In order to address the above issue of classification of imported goods, we would like to refer the relevant legal provisions contained in Section 12 of the Customs Act, 1962; the Customs Tariff Act, 1975 and rules framed thereunder for consideration of proper and appropriate classification of the subject goods under dispute. Section 12. Dutiable goods. - (1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, on goods imported into, or exported from, India. (2) The provisions of sub-section (1) shall apply in respect of all goods belonging to Government as they apply in respect of goods not belonging to Government. Section 1. Short title, extent and commencement. - (1) This Act may be called the Customs Tariff Act, 1975. (2) It extends to the whole of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Section 2. Duties specified in the Schedules to be levied. - The rates at which duties of customs shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of (a) above, packing materials and packing containe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f items the first six-digits of which correspond to that number; (c) tariff item means a description of goods in the list of tariff provisions accompanying eight digit number and the rate of customs duty; (2) the list of tariff provisions is divided into Sections, Chapters and Sub-Chapters; (3) in column (3), the standard unit of quantity is specified for each tariff item to facilitate the collection, comparison and analysis of trade statistics. 6.3 From plain reading of the above legal provisions, it transpires that in order to determine the appropriate duties of customs payable on any imported goods, one has to make an assessment of the imported goods for its correct classification under the First Schedule to Customs Tariff Act, 1975 in accordance with the provisions of the Customs Tariff Act, 1975 by duly following the General Rules for Interpretation (GIR) and the General Explanatory notes (GEN) contained therein. The First Schedule to the Customs Tariff Act, 1975 specifies the various categories of imported goods in a systematic and well-considered manner, in accordance with an international scheme of classification of internationally traded goods, i.e., Harmonized Commodity D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OF A KIND USED IN THE CERAMIC, ENAMELLING OR GLASS INDUSTRY; GLASS FRIT AND OTHER GLASS, IN THE FORM OF POWDER, GRANULES OR FLAKES 3207 10 -Prepared pigments, prepared opacifiers, prepared colours and similar preparations : 3207 10 10 ---Prepared organic dye-stuff pigments, dry Kg. 10% - 3207 10 20 ---Prepared organic dye-stuff pigments, paste Kg. 10% - 3207 10 30 ---Prepared inorganic pigments Kg. 10% - 3207 10 40 ---Prepared opacifiers prepared colours and preparations Kg. 10% - 3207 10 90 ---Other Kg. 10% - 3207 20 - Vitrifiable enamels and glazes, engobes (slips) and similar preparations: 3207 20 10 --- Vitrifiable enamels and glazes Kg. 10% - 3207 20 20 --- Engobes (slips) and similar preparations Kg. 10% - 3207 30 00 - Liquid lustres and similar preparations Kg. 10% - 3207 40 00 - Glass frit and other glass, in the form of powder, granules or flakes Kg. 10% - and Tariff Item Description of goods Unit Rate of Duty Standard Preferential Areas (1) (2) (3) (4) (5) 3824 PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES; CHEMICAL PRODUCTS AND PREPARATIONS OF THE CHEMICAL OR ALLIED INDUSTRIES (INCLUDING THOSE CONSISTING OF MIXTURES OF NATURAL PRODUCTS), NOT ELSEWHERE SPECIFIED OR INCLUD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 as glass frit and glass in the form such as powder, granules or flakes . Further, the contending classification under CTI 3824 9990 as other under the residual entry of other chemical products and preparations of the chemical or allied industries , which is not elsewhere specified or included, residual entry. Further, in terms of the explanation given by the appellants the imported goods are being used in the manufacture of toothpaste, and thus these are not related to chemical or allied industry. From the above analysis, we are of the considered view that for legal purposes, as per GIR-1, the classification of impugned goods under CTI 3207 4000 is appropriate. 9.1 On the other hand, the Revenue s contention is that in terms of GIR-4, the impugned goods shall be classifiable under CTI 3824 9990 as the description of the goods under this heading is most akin, and that these goods are not used in the ceramic or glass industry, in order to merit classification under CTI 3207 4000. From the careful reading of the GIRs, it could be seen that these are required to be followed sequentially; in other words, when the classification of goods is not possible to be arrived under the first ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed silica are taking place, shall furnish the technical details of the product to the Board; it was also decided to seek an expert opinion before arriving at a final decision regarding classification of the product. xx xx xx xx xx 4.3. Sub-heading 3207 specifically covers 'glass frit and other glass, in the form of powder, granules or flakes'. In the HSN explanatory notes to 3207 it has also been provided that Glass frit and all other varieties of glass (including vitrite and glass obtained from fused quartz or other fused silica) in the form of powder, granules or flakes, whether or not coloured or silvered is classifiable under sub-heading 3207. Therefore, on application of General Rules for the Interpretation (GIR) of the First Schedule to Customs Tariff GIR-1 and GIR-6, read with Chapter Note 3 to Chapter 28, 'Fused Silica' is correctly classifiable under tariff item 32074000. 10. We also find that the learned Advocate for the appellants had advanced an argument by stating that pre-consultation notice opportunity has not been given to the appellants. In this regard, we find that pre-notice consultation procedure has been prescribed in terms of the proviso to cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provisions does not apply when such packing materials or packing containers are clearly suitable for repetitive use. 11.2 From plain reading of the above GIR-5, it is clear that certain specified type of containers which provide a specific package in terms of shape or suitability to fit the article, for long term use and is normally presented with such article, is to be classified along with such article. However, when such containers are presented separately, by giving the whole its essential character, as durable special container for packing of specific type of goods, then these could be categorized for classification separately as provided in GIR-5(a). Further, packing materials and packing containers presented along with the goods, which they contain as its contents, shall be classified along with such goods and these are not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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