TaxTMI 
TaxTMI 
2011 (2) TMI 549
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....ority allowed provisional clearance of the goods against a bank guarantee. Pending finalization of the assessment, a sample of the commodity was got tested in the department's laboratory. The Deputy Chief Chemist reported that the sample was made of 'pigmented polyethylene sheet sandwiched between two layers of aluminium sheet with one side backed by pigmented polyethylene film'. The composition of the sample was reported as 'aluminium sheet 47.2%, pigmented polyethylene sheet 51.4% and pigmented polyethylene film 1.4%'. On the basis of this test report, the importer was called upon to show cause why the goods should not be assessed under Heading 39.20 of the said Schedule, considering the predominant plastic content in the product. In thei....
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....sthetic appeal but also better resistance to water, heat, fire etc. as well as a dust-free condition for the building surfaces. It is submitted that all these qualities are attributable to the aluminium component of the commodity and hence it should be appropriately classified under SH 7610.90. The learned consultant has also relied on the Supreme Court's judgment in CCE, Hyderabad v. Bakelite Hylam Ltd., 1997 (91) E.L.T. 13 (S.C.) in support of his argument that the classification of any composite material has to be determined on the basis of its essential character rather than the percentage of components thereof. It is further pointed out that the appellant has been importing aluminium composite panels and that the Customs authorities ha....
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....h, water absorption, thermal resistance, thermal conductivity, tensile strength, tensile modulus, shear strength, sound transmission class, flame spread index, fire resistance, fire propagation etc. We find that all these properties are attributable essentially to the outer component of the commodity, which is aluminium sheet. It is not in dispute that the aluminium composite panel is used as an external lining material for walls of buildings. Therefore, properties like bonding strength, thermal resistance, water absorption, thermal conductivity, fire resistance, sound transmission etc. should be understood with reference to the aluminium sheets. We have noted that this panel is used to improve water resistance, heat resistance, dust repell....
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....f a composite material under the Customs Tariff Schedule. It is the essential character of the goods which has to be reckoned for the purpose. Rule 3(b) of the General Rules for the interpretation of the said Schedule is to the effect that composite goods consisting of different materials or made of different components, which cannot be classified by the reference to Rule 3(a), shall be classified as if they consisted of the material/component which gives them their essential character. 6. Heading 76.10, as it stood during the material period, covers "aluminium plates, rods, profiles, tubes and the like, prepared for use in structures". Sub-heading 7610.10 covers "doors, windows and their frames and thresholds for doors". The residu....