Essential character of HDPE preserved, so concessional customs exemption remained available despite minor additives.

Chemically modified HDPE granules remained classifiable as HDPE for customs purposes because the imported material was shown to be predominantly high density polyethylene with only a miniscule quantity of additives. The description as chemically modified did not change the essential character of the goods, so the concessional basic customs duty under the relevant exemption notifications continued to apply. The Tribunal followed its earlier identical decision on the same type of goods and notification entry, treating essential character as the ining factor for exemption eligibility.

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Issues: Whether chemically modified HDPE granules imported by the appellants remained classifiable as HDPE and were entitled to concessional basic customs duty under Notification No. 21/2002-Cus dated 01.03.2002 and Notification No. 12/2012-Cus dated 17.03.2012, despite the presence of a small quantity of additives.

Analysis: The concessional entry covered high density polyethylene, and the material on record showed that the imported goods were composed predominantly of HDPE with only a miniscule percentage of other chemicals. The mere fact that the samples were described as chemically modified did not alter the essential character of the goods, since the product still remained HDPE for the purpose of the exemption entry. The reasoning followed the earlier identical decision of the Tribunal on the same type of goods and notification entry.

Conclusion: The imported goods were held to remain HDPE and were eligible for the concessional rate under the exemption notifications.

Ratio Decidendi: A product that continues to retain its essential character as HDPE does not lose eligibility for customs exemption merely because it contains a miniscule quantity of additives or other chemicals.

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