Purified balsam classification: prepared storax remained under the tariff heading for natural gums, resins and balsams.

Imported prepared storax, established by test report as a purified balsam meeting B.P. 80 standards for balsamic acid, acid value and saponification value, was classifiable under Heading 1301.90 for natural gums, resins and balsams. The tribunal held that balsams fall within that heading and that no statutory chapter note excluded prepared storax. Chapter Note 1(h) for resinoids did not apply because the Revenue failed to prove the goods were a resinoid. The HSN notes supported the view that natural gums, resins and balsams may be crude, washed or purified, so the preparation did not take the goods out of Heading 13.01.

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Issues: Whether imported prepared storax, described as purified balsam, was classifiable under Heading 1301.90 of the First Schedule to the Customs Tariff Act, 1975 or under Heading 3301.30 as a resinoid.

Analysis: The test report showed that the goods conformed to prepared storax under B.P. 80 and satisfied the prescribed balsamic acid, acid value and saponification value standards. Prepared storax was recognised as a purified balsam. Balsams were covered by Heading 13.01, and there was no statutory chapter note excluding prepared storax from that heading. Chapter Note 1(h) excluded resinoids, but the Revenue did not establish that the goods were a resinoid. The HSN explanatory notes, though not statutory, also indicated that natural gums, resins and balsams may be crude, washed or purified, and there was no evidence of the kind of processing that would take the goods out of Heading 13.01.

Conclusion: The goods were correctly classifiable under Heading 1301.90 and not under Heading 3301.30, and the assessee succeeded on the classification dispute.

Ratio Decidendi: Where imported goods are established to be a purified balsam and no statutory exclusion applies, they are classifiable under the tariff heading for natural gums, resins and balsams and cannot be treated as a resinoid merely because of preparation or purification.

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