Unrefined sulphur exemption upheld where bentonite clay did not change the essential character of the imported goods.

Imported sulphur marketed as brimstone 90 remained crude or unrefined sulphur for exemption purposes because it was recovered as a refinery by-product from sour natural gas and was unrefined at the stage of recovery. The subsequent addition of bentonite clay was only an inert filler to improve handling and application, and did not alter the chemical character or essential nature of the sulphur. On that basis, the goods continued to fall within heading 25.03 as unrefined sulphur, and the exemption under Notification No. 11/97-Cus was available to the assessee.

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Issues: Whether imported sulphur marketed as brimstone 90 and mixed with bentonite clay retained the character of crude or unrefined sulphur so as to qualify for the exemption under Notification No. 11/97-Cus.

Analysis: The relevant tariff entry covered crude or unrefined sulphur under heading 25.03. The material showed that the sulphur was obtained as a by-product in refinery processing of sour natural gas and was therefore unrefined at the stage of recovery. The later addition of bentonite clay served only as an inert filler to improve handling and application and did not change the chemical character of the sulphur. Since the admixture did not alter the essential nature of the sulphur, the goods continued to answer the description of unrefined sulphur for the purpose of the notification.

Conclusion: The benefit of the exemption notification was admissible and the issue was decided in favour of the assessee.

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