Classification of heat shrinkable sleeve granules follows binding precedent under Chapter 8547, not Chapter 39.

Imported granules used as raw material for heat shrinkable sleeves were classified under Chapter Heading 8547 of the Customs Tariff Act, not under Chapter Heading 3901.90. The Tribunal followed an earlier binding High Court ruling on identical imports, which had treated outer layer heat shrinkable sleeve granules as goods of Chapter 85.47, and noted that the Revenue's challenge to that ruling had been dismissed by the Supreme Court. On that basis, the contrary classification under Chapter 39 was rejected and the assessee's classification was accepted.

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Issues: Whether the imported granules, described as outer layer raw material for heat shrinkable sleeves, were classifiable under Chapter Heading 8547 of the Customs Tariff Act, 1975 or under Chapter Heading 3901.90.

Analysis: The imported goods were raw materials in granule form meant for manufacture of heat shrinkable sleeves. The Tribunal relied on the earlier High Court ruling concerning identical imports, which had specifically treated outer layer heat shrinkable sleeves in granule form as falling under Chapter 85.47. The Revenue's challenge to that ruling had also been dismissed by the Supreme Court. In these circumstances, the contrary view that the goods must be assessed under Chapter 39 was not accepted.

Conclusion: The imported goods were held classifiable under Chapter Heading 8547 and not under Chapter Heading 3901.90, in favour of the assessee.

Ratio Decidendi: Where identical imported granules are established as raw material for heat shrinkable sleeves and an earlier binding ruling has classified such goods under Chapter 85.47, the same classification must follow and classification under Chapter 39 is untenable.

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