Classification of alpha-cellulose as cellulose in primary forms prevails over origin-based tariff classification for wood pulp derivatives

Alpha-cellulose grade, derived from wood pulp, was held classifiable as cellulose in primary forms because the goods were admitted to be cellulose powder and not chemical wood pulp itself. The tariff entry specifically covering cellulose in primary form prevailed over classification by origin or source material, and the fact that the product was obtained from wood pulp did not shift it to the wood pulp heading. The interpretation adopted by the lower authority did not assist classification under chemical wood pulp. Revenue's classification was restored and the importer's favourable appellate order was set aside.

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Issues: Whether the imported alpha-cellulose grade, being a cellulose powder derived from wood pulp, was classifiable under the heading for chemical wood pulp or under the heading for cellulose in primary forms.

Analysis: The imported goods were admitted to be derivatives of wood pulp obtained by a chemical process and were not chemical wood pulp itself. In the absence of any dispute that the goods were cellulose in primary form, and since powder is a recognised primary form, the classification had to follow the specific heading covering cellulose and its chemical derivatives in primary forms. The origin of the goods as wood pulp was held to be irrelevant where the tariff entry specifically covered the product in question. The interpretation rule applied by the lower authority did not assist classification under the wood pulp heading.

Conclusion: The goods were correctly classifiable under the heading for cellulose in primary forms and not under the heading for chemical wood pulp.

Final Conclusion: The classification determined by the Revenue was restored and the appellate order in favour of the importer was set aside.

Ratio Decidendi: Where a tariff entry specifically covers a product in its commercially accepted primary form, classification must be made under that specific entry rather than by reference to the product's origin or source material.

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