Tribunal grants duty exemption for HDPE import, rejecting Revenue's classification.

The Tribunal allowed the appeal, granting the appellant the benefit of duty exemption under Sr.No.477 of the Customs Tariff Act, 1975. The dispute centered on the classification of the imported product as High Density Polyethylene (HDPE) for duty purposes. Despite the Revenue's argument that the product was chemically modified compounded HDPE, the Tribunal found insufficient evidence to support this assertion and ruled in favor of the appellant, concluding that the product should indeed be treated as HDPE eligible for the concessional rate of duty.

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Issues:
Classification of imported product for duty exemption under Customs Tariff Act, 1975.

Analysis:
The appellant imported a product declared as "Borstar HE 3450-H HD Polyethylene" and classified it under CTSH 3901 2000 of the Customs Tariff Act, 1975, claiming a concessional rate of duty of 5% for High Density Polyethylene (HDPE) under Sr.No.477 of exemption Notification No.2/2002-Cus. The Revenue contended that the product was not eligible for exemption under Sr.No.477. The relevant tariff heading and exemption notification were examined. The appellant produced a test certificate showing the product's characteristics, but the authorities concluded that the product was chemically modified compounded HDPE, not covered by the exemption. The appellant argued that the product was not chemically modified HDPE and should be treated as HDPE. The authorities did not consider technical literature or obtain a test certificate from a Government laboratory. The trade parlance test was not applied. A previous case regarding the addition of carbon black to HDPE was referenced.

The Tribunal found that there was no evidence to support the conclusion that the imported product was chemically modified or not known as HDPE in the market. Therefore, the benefit of exemption under Sr.No.477 should be extended to the appellant. The appeal was allowed, granting consequential relief to the appellant.

In conclusion, the judgment revolved around the classification of the imported product for duty exemption under the Customs Tariff Act, 1975. The appellant's claim for a concessional rate of duty for HDPE was contested by the Revenue, alleging the product was chemically modified compounded HDPE not covered by the exemption. The Tribunal found insufficient evidence to support this claim and ruled in favor of the appellant, extending the benefit of exemption under Sr.No.477.

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