TaxTMI 
TaxTMI 
1989 (11) TMI 169
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....e to the Customs Tariff Act, 1975 ("the Schedule") as it stood at the material time, as against the claim for classification of the product as a "fatty alcohol" under Chapter 15 of the Schedule and consequent rejection of the refund claim filed by the appellants. 2. As seen from the orders of the lower authorities, the goods were subjected to chemical test and found to be fatty alcohol having the characteristics of artificial wax and hence the assessment under Chapter 34. This classification would not appear to make any difference to the duty leviable under the Schedule ("basic duty of customs") but the appellants claim is for refund of the additional duty of customs leviable under Section 3 of the Act. Customs Notification No. 48/79 dat....
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....ted in support. The relevant note reads - "The heading does not include: (a) ....... (b) Fatty alcohols which have the character of artificial waxes (heading 34.04)." The Chemical Examiner's report, as already noted, shows the subject fatty alcohol as having the character of artificial wax. Hence, it is urged, the appropriate classification is under heading 34.01/7(2) of the Indian Customs Tariff Schedule. 6. As noted in para 9 of the Tribunal's order in the Hico Products case (supra), the CCCN explanatory notes have no legal force. They are, however, a useful aid in understanding the scope, and meaning, of headings and terms used in our Tariff Schedule. But if the legal text of our Schedule, read with the statutory aids to t....
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....oods conform to the above definition of "Prepared Waxes" and, hence this classification has to be ruled out. Now, it is to be noted that Statutory Note 1(d) to Chapter 15 (extracted earlier) excludes, in terms, prepared waxes but not artificial waxes. Even so, if the subject goods fall within any heading in Section VI of the Tariff Schedule, they would be out of Chapter 15 because of the said Statutory Note. Chapter 34 is in Section VI. We have, therefore, to consider whether the goods are "artificial waxes" within the meaning of heading 34.01/07(2). The appellants' contention is that the imported Behenyl Alcohol C22 70% is a mixture of aliphatic alcohols - C18, C20, C22 and C24 in which Behenyl Alcohol C22 predominates, it being present to....
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....ng of the term "industrial fatty alcohols", the corresponding note under the CCCN, would exclude such alcohols from the term "fatty alcohols". Therefore, not much reliance can be placed on these notes when it comes to the question of interpretation of the tariff entry in these proceedings. 8. Assuming that the subject goods are "artificial waxes" because they have the characteristics of artificial waxes, the question would be which is the more specific heading - "fatty alcohols" or "artificial waxes"? We would be inclined to think that "fatty alcohols" is the more specific description especially in view of the position that Chapter Note 1(d) excludes, in terms, "prspared waxes" but not "artificial waxes" from the scope of Chapter 15. ....