2006 (6) TMI 232 - AT - Customs

Tribunal classifies Bituminous Black as 'paints and varnishes' not 'solvents'

The Tribunal determined that Bituminous Black, despite containing bitumin and a solvent, falls under Chapter Heading 32.10 as 'other paints and varnishes' ... Appellate Tribunal’s orders - Non-implementation of Issues: Classification of Bituminous Black under Chapter Heading 27.15 or Chapter Heading 32.10In this case, the main issue revolves around the classification of Bituminous Black by the manufacturers under Chapter Heading 27.15, while the department argues for classification under Chapter Heading 32.10 based on the HSN Explanatory note. The Asstt. Commissioner confirmed the department's view, leading to an appeal by the Revenue after the Commissioner (Appeals) sided with the manufacturers.Upon review, the Tribunal noted that bituminous mixtures are typically used for road surfaces, and bituminous paints and varnishes under Chapter Heading 32.10 are excluded if they differ from certain mixtures of Chapter Heading 27.15. The Tribunal observed that Bituminous Black, composed of bitumin and a solvent, is used to paint the bottom of motor vehicle chassis, dries on exposure to air like paints or varnishes, and provides protection. Considering these characteristics, the Tribunal concluded that the product falls under Chapter Heading 32.10 as per the HSN explanatory note to Heading 27.15, specifically exclusion clause (e). Therefore, the Tribunal accepted the Revenue's claim that the product is more appropriately classified under Chapter Heading 32.10 as 'other paints and varnishes,' overturning the previous decision and allowing the appeal brought by the Revenue.