Tariff classification of polyurethane paints turns on reliable proof of solvent content under Chapter 32 note 3.

Polyurethane paints were classified under Chapter Heading 3210.90 because the record did not establish, on reliable technical material, that they satisfied the Note 3 threshold for inclusion in Heading 3208.90. Note 3 treats solutions in volatile organic solvents as falling within Heading 3208 only where the solvent exceeds 50% of the weight of the solution, and the goods were shown to consist of two components supplied separately. As the solvent percentage had been questioned as unsubstantiated, the appellate authority's classification was supported by the evidence and the departmental challenge failed.

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Issues: Whether the respondents' polyurethane paints were classifiable under Chapter Heading 3208.90 or Chapter Heading 3210.90, and whether Note 3 of Chapter 32 applied on the basis of the weight of synthetic solvent in the solution.

Analysis: Chapter Heading 32.10 covers other paints and varnishes, while Chapter Heading 32.08 covers paints and varnishes based on synthetic polymers or natural resins, including solutions as defined in Note 3. Note 3 treats solutions in volatile organic solvents as included in Heading 3208 only when the weight of the solvent exceeds 50% of the weight of the solution. The record showed that the goods consisted of two distinct components supplied separately, and the percentage of synthetic solvent had been questioned as having been arrived at without basis. The determination of solvent content was therefore not shown to rest on reliable technical material, and the finding of the appellate authority was supported by the evidence.

Conclusion: The classification under Chapter Heading 3210.90 was upheld, the departmental appeal was rejected, and the cross objections were disposed of accordingly.

Final Conclusion: The decision confirms the appellate authority's classification of the goods in the assessee's favour and leaves the departmental challenge unsuccessful.

Ratio Decidendi: Where the applicability of a tariff entry depends on a quantified technical criterion, the classification cannot be displaced on the basis of an unsubstantiated or arbitrary assessment of that criterion.

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