Classification of phenolic resins depends on reliable test evidence showing the goods differ from the declared phenol formaldehyde resin.

Classification of phenol formaldehyde resins under sub-heading 3909.51, rather than as other phenolic resins under sub-heading 3909.59, turned on whether the chemical test material established that the goods were modified phenolic resins. The earlier report described the sample only as phenolic resin in lumps and did not exclude phenol formaldehyde resin, while the later report was not shown to have been furnished to the assessee. On the available record, there was insufficient material to show that the goods differed from the declared product, so the departmental classification was not sustained and relief was given to the assessee.

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Issues: Whether the product described as phenol formaldehyde resins was correctly classifiable under sub-heading 3909.51 or was classifiable as other phenolic resins under sub-heading 3909.59.

Analysis: The department relied on chemical test reports to contend that the goods were modified phenolic resins and not phenol formaldehyde resins. The earlier test report only described the sample as phenolic resin in lumps and did not state that it was not phenol formaldehyde resin. The later report was not shown to have been furnished to the assessees, and the record did not contain sufficient material to prove that the goods were different from those declared. The finding of classification against the assessees was therefore unsupported.

Conclusion: The classification adopted by the department was not sustained and the issue was decided in favour of the assessee.

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