TaxTMI 
TaxTMI 
1985 (11) TMI 125
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.... is whether "Arbocel FDY 600 Cellulose Powder" imported by the appellants was liable to be charged to additional duty of customs at the rate of 40%+ 5% of 40% ad valorem under Item No. 15-A of the Central Excise Tariff Schedule as assessed by the Customs Authorities or at 8% ad valorem under Item 68 of the said Schedule (hereafter referred to as C.E.T.) as contended by the appellants. 3.  The customs authorities had assessed the goods to basic customs duty under Heading No. 39.01/06 of the Imports Customs Tariff Schedule. The appellants' contention was that the correct heading was under Chapter 47 of the said Schedule. It, however, appears that no arguments were addressed before the lower authorities in respect of this plea. The Col....
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....n capable at some stage, of being formed under external influence (usually heat and pressure, if necessary with a solvent or plasticisers) into shapes which are retained on the removal of the external influences. The imported cellulose powder was not capable of being "formed" unlike synthetic resins and artificial plastic materials. Cellulose powder was only a filler having multifarious applications as would be seen from page 569 of the C.C.C.N. explanatory notes. Shri Sogani then referred to the Glossary of Chemical Terms, (Hempel and Hawley) and stated that the term "regenerated cellulose" was meant to cover rayon and cellophane. The imported goods were neither of these. Shri Sogani then referred to page 663 of the Explanatory Notes under....
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....fferent from the ones described in the C.C.C.N. Compendium of Opinions. 9.  We have carefully considered the submissions of both sides. The goods are described in the bill of entry for home consumption as "ARBOCEL FDY 600" cellulose powder. In the statement of facts accompanying the appeal, it is stated that the cellulose powder imported by the appellants is for use in the manufacture of welding electrodes which they are licensed to manufacture. It appears that the goods were imported in the month of January 1982 and warehoused. The goods were cleared for home consumption from the warehouse in September, 1982. On 1-3-1982, Item No. 15-A of the Central Excise Tariff Schedule had undergone a change by virtue of the provisions of the F....
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....m also covers, apart from artificial or synthetic resins and plastic materials, "other high polymers". If cellulose powder is a high polymer, it would fall for classification under the said item. 12.  The question, therefore, is whether cellulose powder is a high polymer. The "Condensed Chemical Dictionary", 10th Edition, revised by Gessner G. Hawley, describes cellulose as a natural carbohydrate high polymer (poly saccharide) consisting of anhydro glucose units joined by an oxygen linkage to form long molecular chains that are essentially linear. It goes on to say that the degree of polymerisation ranges from 1,000 for wood pulp to 3,000 for cotton fibre giving a molecular weight from 1,60,000 to 5,60,000 (page 209 of the dictionar....
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....placed before us to ascertain whether the subject imported product was similar to the indigenous product and whether, apart from the chemical test, all relevant circumstances were gone into before classifying the indigenous product. We are thus not able to attach much value to the Superintendent's letter placed before us. 16.  From the leaflet on ARBOCEL, it is seen that it is a highly purified cellulose free of lignin, resins and undesired ingredients. It is clear, therefore, that the product is not cellulose in its natural form but processed to a high degree of purity. In the state it is imported, it can be no longer described as a natural product but appropriately only as a manufactured product even if the source is cellulose obt....