TaxTMI 
TaxTMI 
1985 (1) TMI 328
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....ssable at a lower rate of duty and that the differential amount of duty is due to be refunded to them. 3. That appellants' claim was not accepted by the lower authorities and hence the appeal. 4. The competing tariff headings are - (a) For levy of basic customs duty. - Heading No. 39.01/06 of the First Schedule to the Customs Tariff Act, 1975 (CTA, 1975 for short) covering inter alia synthetic resins and plastic materials-as assessed by the customs authorities ; and Heading No. 40.01/04 of the same Schedule covering inter alia synthetic rubber-as claimed by the appellants. (b) For levy of additional (countervailing) duty of customs. - Item No. 15A(1) of the First Schedule to the Central Excises and Salt Act, 1944 (CET, for short) covering inter alia synthetic resins and plastic material as assessed by the customs authorities; and Item No. 16AA, CET covering inter alia synthetic rubber-as claimed by the appellants. 5. First, we shall consider the classification under the C.T.A., 1975. Heading 40.01/04 of the Schedule covers, among other products, synthetic rubber. There is a statutory definition of the term "Synthetic rubber" for the purpose of the Chapter....
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....igh sulphur rubber accelerator. The same position was supported by the book "Rubber Technology and Manufacture" by C.M. Blow. Saturated Rubbers could not be cross-linked with sulphur. Since Hypalon 40 could be vulcanised with sulphur, it could not be saturated-it could only be unsaturated. By infra red spectroscopy, it could be shown that Hypalon 40 was unsaturated in the raw state though the degree of unsaturation was very low, being of the order of 3 double bonds per 1000 carton atoms. [To a query from the Bench, Shri Pradhan, Rubber Technologist of the appellant-company replied that S.B.R. (Styrene-butadiene rubber) contained 65% unsaturation and isoprene rubber, 100%]. Shri Bannerjee submitted that the statement before the Appellate Collector that Hypalon was a saturated substance was wrong on facts and should not come in the way of the correct appreciation of the facts of the case. He also cited the opinion given by a Professor of the Calcutta University to the effect that Hypalon was unsaturated and classifiable as synthetic rubber under Chapter 40. Concluding, Shri Bannerjee, pleaded that if Chapter 40 was held to be not apt. Chapter 39 was also not apt since it did not incl....
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....oil and chemicals. Hypalon resists discoloration or exposure to light, and is widely used in light-coloured Vulcanizates. It can be compounded to give excellent mechanical properties-for example, high tensile strength and abrasion resistance. Several types and grades of Hypalon are available for a variety of end-use requirements. The condensed Chemical Dictionary by Gessner G. Hawley (page 554,10th Edition) supports this. It states that Hypalon is a trade mark of Chlorosulfonated polyethylene, a synthetic rubber. It gives the uses for hypalon as insulation for wire and cable; shoe soles and heels; automotive components, building products, coating, flexible tubes and hoses, seals, gaskets, diaphragms. The fact that the Import Control authorities recognise Hypalon as a synthetic rubber is not, in our view, decisive of the classification of the goods under the Customs Tariff Schedule since the objects of the two enactments are different. 12. The question, therefore, arises whether Hypalon is classifiable under Heading No. 40.01/04 of the Customs Tariff Schedule which covers inter alia natural or synthetic rubber. This question has, in the context of the Customs Tariff Schedul....
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....llants have not chosen to do any of these things. 15. For a proper appreciation of the point involved in the present case, it is necessary to know the meaning of the terms "Saturated" and "Unsaturated" in relation to chemical substances. The following is extracted from the Chambers Dictionary of Science and Technology :- "Saturated compounds (Chem). Compounds which do not contain any free valencies and to which no hydrogen atoms or their equivalent can be added, i.e. which contain neither a double nor a triple bond." (Page 1033). "Unsaturated (Chem).(l) Less concentrated than a saturated solution or vapour. (2) Containing a double or a triple bond, especially between two carbon atoms; unsaturated molecules can thus add on other atoms or radicals before saturation is reached." (Page 1232). The following are extracted from the Condensed Chemical Dictionary (Tenth Edition) revised by Gessner G. Hawley : - "Saturation. (1) The state in which all available valence bonds of an atom (esp. carbon) are attached to other atoms. The straight-chain paraffins are typical saturated compounds. See also unsaturation..............,........."(Page 910). "Unsaturation. Of? chemical ....
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....ain. By this treatment, polyethylene is converted to a rubber like material in which the undesirable degree of crystallinity is destroyed but other desirable properties of polyethylene are retained. ...... The outstanding chemical stability of Hypalon results from the complete absence of unsaturation in the polymer chain." "Vulcanization is accomplished by means of metallic oxides, such as litharge, magnesia, or red lead, in the presence of an accelerator. The sulfonyl chloride groups provide the sites of reactivity at which the bases react with the chlorine of the sulfonyl chloride group to give cross-links."* 18. The Kirk-Othmer Encyclopaedia of Chemical Technology (Third Edition, Volume 8) has the followings on Chlorosulfonated Polyethylene at pages 484, 485 and 487 "Chlorosulfonated polyethylene is the term used to represent a group of synthetic elastomers derived from the reaction of a mixture of chlorine and sulfur dioxide on any of the various plastic polyethylenes (see Olefin polymers). The product of this reaction is a chemically modified form of the original polyethylene, and may contain 20-40% chlorine (mainly as secondary alkyl chlorides, RR'CHCI) and ca 1 -2% ....
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.... has stated that Hypalons are fully saturated and that unsaturation results during the curing process. 21. "Rubber Technology and Manufacture" edited by C.M. Blow of the University of Technology, Loughborough University (published by Newnes Butter Worth, London) also recognises chlorosulfonated polyethylene as CSM type of rubber. We have already referred to the ASTM Designation 418 : 1964 which gives the same designation and describes such rubber as saturated. 22. It has been urged by the appellants that polyethylene, the base material for manufacture of Hypalon, contains unsaturation and that this unsaturation is retained during chlorosulphonation for making Hypalon. This fact is said to be confirmed by infrared spectrophotometry, (ASTM-D-3677-78 is cited in support), because the absorption band due to unsaturation, as seen in the infrared spectra of polyethylene, is observed in the same wave length region of 10-11.5 micron, in the case of chlorosulphonated polyethylene also. ASTM D-3677-78, as seen from the document, lays down standard test methods for rubber-identification by infrared spectrophotometry. The document says that these methods, based on infrared examination....
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.... magnesia and pentaerythritol together with accelators of which dipentamethylene thiuram tetrasulphide (DPTS) is a suitable one. Thiazoles are satisfactory with litharge. In all such curing systems, the book says, it is believed that a mixture of ionic and covalent cross-links is produced, the latter involving sulphur cross-links through chain unsaturation arising from complex degradative reactions of sulphomyl chloride groups. That unsaturation results in the process of curing-which is what the Deputy Chief Chemist said in his technical opinion of 2-4-1982-is borne out by the above account from C.M. Blow's book. 24. The discussion contained the preceding paragraphs leads to the conclusion that Hypalon is a saturated substance and that unsaturation occurs during the process of curing or vulcanisation. It is not an unsaturated substance as contended by the appellants. 25. In our Order No. C-1012/81, dated 31-12-1984 in Appeal No. CD (SB) (T) A.No. 1593/84-C - Collector of Customs, Calcutta v. M/s. Indian Cable Company Ltd., Calcutta, the same issue cropped up in respect of Hypalon 40. This order was relied upon in course of the present proceedings by the Deptl. Representati....