Exemption for stabilised chemical product upheld where added preservative did not change its commercial or chemical identity.

A stabilised form of 3-Dimethylamine-1-Chloropropane HCl 50% aqueous solution remained classifiable in Chapter 29 because Note 1(f) treats products containing an added stabiliser necessary for preservation or transport as still falling within the chapter. Technical evidence showed the hydrochloric acid was added only to stabilise an unstable organic base and that the imported item was commercially and chemically the same as 3-Dimethylamine-1-Chloropropane. On that basis, the exemption notification was not to be read narrowly so as to exclude the stabilised form where the underlying product remained unchanged. The goods were therefore covered by the notification and exemption was admissible.

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Issues: Whether 3-Dimethylamine-1-Chloropropane HCl 50% aqueous solution, being a stabilised form of 3-Dimethylamine-1-Chloropropane, was entitled to exemption under Notification No. 179/86.

Analysis: The imported product fell under Chapter 29. Note 1(f) of Chapter 29 treated products with an added stabiliser necessary for preservation or transport as continuing to fall within the chapter. The evidence on record, including technical certificates, showed that the hydrochloric acid was added only to stabilise an unstable organic base and that the imported item was essentially the same as 3-Dimethylamine-1-Chloropropane. In such circumstances, the notification could not be read so narrowly as to exclude the stabilised form when the underlying product remained the same and the stabiliser was only for preservation.

Conclusion: The imported goods were covered by Sl. No. 10 of Notification No. 179/86 and the exemption was admissible.

Final Conclusion: The appeals succeeded and the denial of exemption was set aside, with consequential relief.

Ratio Decidendi: A product that remains commercially and chemically the same as the item specified in an exemption notification does not lose the benefit merely because it contains an added stabiliser necessary for preservation or transport.

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