Surface active preparation classification and industrial exemption applied to a silicone-based anti-foaming agent

A preparation containing silicones, used as an anti-foaming agent in pharmaceutical manufacture, was treated as classifiable under Tariff Item 15AA because its nature and industrial use brought it within the entry for surface active preparations, and the residuary Item 68 was inapplicable. It was not covered by Item 15A, since it was not itself a silicone or silicone resin. The product also qualified for exemption under Sl. No. 4 of Notification No. 101/66-C.E. because an anti-foaming agent was regarded as a like preparation to an emulsifier or wetting agent used in an industrial process, with exemption available from the date the claim was made in the classification list.

---

---

Issues: (i) Whether the product "Katrang AF 150" was classifiable under Tariff Item 15AA and not under Tariff Item 68 or Tariff Item 15A; (ii) Whether the product was entitled to exemption under Sl. No. 4 of Notification No. 101/66-C.E. dated 17-6-1966.

Issue (i): Whether the product "Katrang AF 150" was classifiable under Tariff Item 15AA and not under Tariff Item 68 or Tariff Item 15A.

Analysis: The product was a preparation containing silicones and used as an anti-foaming agent in the manufacture of pharmaceuticals. The residuary Item 68 was held inapplicable because the goods were more appropriately covered by a specific tariff item. Item 15AA covered organic surface active agents, surface active preparations and washing preparations, and the nature and use of the product brought it within that entry. The later recast of Item 15A did not alter the position, because the product was not a silicone itself or a silicone resin, but a preparation containing silicones for a specific industrial use.

Conclusion: The product was correctly classifiable under Tariff Item 15AA and not under Tariff Item 68 or Tariff Item 15A.

Issue (ii): Whether the product was entitled to exemption under Sl. No. 4 of Notification No. 101/66-C.E. dated 17-6-1966.

Analysis: Sl. No. 4 covered emulsifiers, wetting agents, softeners and other like preparations intended for use in an industrial process. An anti-foaming agent was held to be a preparation of the same kind as an emulsifier or wetting agent because it acts by lowering surface tension in industrial use. The product was used in an industrial process and therefore answered the description of the notification. The exemption was available from the date the claim was made in the classification list.

Conclusion: The product was entitled to exemption under Sl. No. 4 of Notification No. 101/66-C.E. from 3-1-1981.

Final Conclusion: The appeal succeeded to the extent of securing exemption under the notification and consequent relief from excess duty, while the classification under Tariff Item 15AA was maintained.

Ratio Decidendi: A preparation containing silicones, when used as an anti-foaming agent in industrial manufacture, may fall under the tariff entry for surface active preparations, and an anti-foaming agent can qualify as a like preparation to emulsifiers or wetting agents for exemption purposes.

---