Tariff classification of laminate adhesives follows accepted precedent, with mixture falling under Chapter 35-06, not Chapter 39-09.

A mixture of melamine and formaldehyde and phenol and formaldehyde used as adhesive in laminate manufacture was classified under Chapter 35-06 rather than Chapter 39-09. The Tribunal relied on its earlier decision in the assessee's own case and other accepted precedents, noting that those rulings had attained finality. The classification issue was resolved in favour of the assessee, and the demand, interest and penalty were set aside with consequential relief.

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Issues: Whether the mixture of melamine and formaldehyde and phenol and formaldehyde used as adhesives or glue in the manufacture of laminates is classifiable under Chapter 35-06 as claimed by the assessee or under Chapter 39-09 as held by the Revenue.

Analysis: The dispute turned on the proper classification of the adhesive mixture used in the manufacture of laminates. The Tribunal noted that the same issue had already been decided in the assessee's own case for an earlier period and that other Tribunal decisions had also taken the view that such mixtures used as glue or adhesive in laminate manufacture fall under Chapter 35-06. The Tribunal further noted that those decisions had attained finality and had been accepted by the Revenue.

Conclusion: The mixture was held classifiable under Chapter 35-06 and not under Chapter 39-09, in favour of the assessee.

Final Conclusion: The impugned demand, interest and penalty were set aside and the appeal was allowed with consequential relief as per law.

Ratio Decidendi: A mixture used as glue or adhesive in the manufacture of laminates is to be classified according to its established tariff entry under the relevant chapter, and consistent precedent accepted by the Revenue should be followed.

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