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of <h1>Tribunal reclassifies Hycar 4021 as synthetic resin, not rubber, under Customs Tariff.</h1> The Tribunal set aside the Appellate Collector's ruling and directed the assessment of Hycar 4021 under Chapter 39.01/06, classifying it as a synthetic ... - Issues:1. Classification of Hycar 4021 under Customs Tariff headings.2. Interpretation of Chapter 40 of the Customs Tariff.3. Dispute regarding whether Hycar 4021 is a synthetic rubber or a synthetic resin.4. Preliminary objection regarding non-payment of refund pending appeal.5. Application of Sections 129E of the Customs Act, 1962.Analysis:1. The appeal dealt with the classification of Hycar 4021 under the Customs Tariff headings. The Appellate Collector had ruled that it should be assessed under heading 40.01/04 as a synthetic rubber, contrary to the initial assessment under heading 39.01/06 by the Assistant Collector. The dispute centered around the proper classification of Hycar 4021, with the department arguing for Chapter 40 and the appellant advocating for Chapter 39.2. The interpretation of Chapter 40 of the Customs Tariff was crucial in determining the classification of Hycar 4021. The department contended that Note 4(a) of Chapter 40 excluded synthetic rubber unless they could be irreversibly transformed into non-thermoplastic substances by vulcanization with sulphur. The Tribunal emphasized that for a product to be classified under Chapter 40, it must be an unsaturated substance vulcanizable with sulphur, highlighting the specific criteria for inclusion under this chapter.3. The dispute also revolved around whether Hycar 4021 should be classified as a synthetic rubber or a synthetic resin. The department argued that Hycar 4021 did not meet the criteria for classification under Chapter 40 as a synthetic rubber due to its chemically saturated nature. On the other hand, the appellant contended that Hycar 4021 was recognized commercially as a synthetic rubber and should be assessed accordingly.4. A preliminary objection was raised regarding the non-payment of the refund ordered by the Appellate Collector pending the appeal. The appellant argued that the appeal should not proceed until the refund was paid, citing Section 129E of the Customs Act, 1962, which required depositing the duty or penalty pending an appeal. However, the Bench rejected this demand, stating that such a payment was not contemplated by law.5. The application of Section 129E of the Customs Act, 1962 was a point of contention, with the appellant arguing for the payment of the refund ordered by the Appellate Collector pending the appeal. The Tribunal clarified that Section 129E did not justify the department making such a payment, emphasizing the legal requirements for depositing duty or penalty pending an appeal.In conclusion, the judgment addressed the classification of Hycar 4021 under the Customs Tariff headings, the interpretation of Chapter 40, the dispute over its classification as a synthetic rubber or resin, the preliminary objection regarding non-payment of refund, and the application of Section 129E of the Customs Act, 1962. The Tribunal set aside the Appellate Collector's order and directed assessment under Chapter 39.01/06 for Hycar 4021, resolving the classification dispute in favor of the appellant.
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