TaxTMI 
TaxTMI 
2003 (11) TMI 371
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....period of limitation not to be applicable, since the appellant had made the Department aware the nature of the product but confirmed the classification of the goods in Heading 3907.20 of the tariff and demanded duty of clearances made within the normal period of limitation contained in Section 11A of the Act. 3. Chapter 29 covers specified organic chemicals and heading claimed by the appellant is for other organic compounds i.e. those organic compounds not specified elsewhere in Chapter 29. The classification confirmed by the Commissioner is Heading 39.07 which covers poly acetals, other polyethers and epoxide resins, in primary forms. Before going on to consider the contentions advanced, it is necessary to extract portions of the tariff in order to lay the appropriate background against which the classification could be discussed. Note 1(a) to Chapter 29 provides that except where the context otherwise requires, the headings of the chapter apply only to separate chemically defined organic compounds, whether or not containing impurities. Note 2(b) of Chapter 29 provides that except by the context otherwise requires, the heading of the chapter requires, the headings of the c....
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.... of the tariff is therefore justified. The Explanatory Notes explain the scope of the Headings 3901 to 3911 which is governed by Note 3 to chapter and the heading apply only to goods of a kind produced by chemical, synthetic, falling in the following categories (a) liquid synthetic polyolefin, (b) resins not highly polymerised of the coumarone-indene type, (c) other synthetic polymers with an average of at least five monomer units, (d) silicones, (e) resols and other prepolymers. The Explanatory Notes explains that the goods in item (e) including other synthetic polymers with an average of at least five monomer units which "include plastics" as defined in Note 1 to this chapter. Thus, of the five categories of the goods here, it is only one group for the classification of which Note 1 to Chapter 39 would be relevant. None of the other four categories would be a plastic as defined in Note 1. It is relevant to note that the Explanatory Notes explain that in general the chapter covers substances called "polymers" semi-manufactured and articles thereof provided that they are not excluded by Note 2 to the chapter. It is a truism that all plastics are polymers but not all polymers are pl....
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....o 84 and two other grades of polyethylene glycol where m differs. Indian Pharmacopoeia also refers to such grades of polyethylene glycol. The extracts from the Encyclopaedia of Polymer Science and Engineering in a Table referring to properties of polyethylene glycol indicates the molecular weight, depending upon the designation to vary. 7. The extracts from the Encyclopaedia the Chemical Technology by Kirk Othmer which has been reproduced says the chemistry of these glycols centres around there of hydroxyl in which all their chemistry being common to that of the simple alcohols. They react readily to form esters, acetals, ketals, aldehydes, and other derivatives, characteristics of hydroxyl and containing compounds. The Encyclopaedia goes on to say that the commercially available polyethylene glycols are mixtures of many polyethylene glycols. These mixtures are quite reproducible in commercial practice and graphic representation of the distribution of species as given in figures too. The Condensed Chemical Dictionary again defines polyethylene glycol to be a series of colourant water soluble known volatile liquid compounds with an average molecular weight ranging from 200 t....
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....ilar to resols, liquid polyisobutylene which latter products, despite having no feasible or obvious reasons plastic characteristics fell for classification in Heading 3901/06 of Chapter 39, at the relevant time covered "artificial resins such as condensation, poly condensation, poly addition polymerisation, co-polymerisation products; artificial plastic materials, silicones, natural resins, modified by fusion or esterification such as run gums or ester gums; regenerated cellulose; vulcanised fibre; hardened protiens; chemical derivatives of natural rubber; other polymers (including alginic acid, its salts and esters) linoxyn." Note 2 to Chapter 39 provided that in this heading polycondensation, poly addition, polymerisation, co-polymerisation products are to be taken to apply to goods of a kind produced by chemical synthesis answering to one of the following descriptions : (a) artificial plastics including artificial resins; (b) silicones; (c) resols, liquid polyisobutylene and similar artificial polycondensation or polymerisation products." 13.&....
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....ce has been brought on record initially which indicates that the products in question is plastic as defined in Note 1 to Chapter 39. Nowhere the Chemical Examiner mentioned in the test report that the product tested by him is plastic. It is also mentioned in the test report that the product is polyethylene polymer. Similarly the Collector (Appeals) in the case of Vasudha Chemicals has itself recorded not by holding that once the product conforms to description of the products covered by heading they are not hit by any Chapter Note. This finding goes against the General Rules for Interpretation of the Schedule. ...The Revenue further has not rebutted" the finding of the Collector (Appeals) in the case of SM Dye Chemicals Ltd v. CCE that "all the products from PEG 300 to 6000 a separate chemically defined organic compound as they have kept defining molecular structure defined molecular weight which are represented by numbers 300 to 6000 mentioned after PEG. The Department has thus not substantiated that the product is not separate chemically defined organic compound." 16. The two bases on which the Tribunal proceeds are that the product is not being shown to be a plastic, as ....