2018 (5) TMI 928

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....in DFIA licences and prayed for clearance of the goods with the benefit of DFIA licences. Both the authorities below took the view that such DFIA licences covered only chemicals described as "SYNTAN". The Customs Department disallowed the benefit of DFIA licences for "Melamine" for the reason that the goods specifically mentioned and allowed for import under such DFIA licences was " SYNTAN", which was different from the imported goods. The investigation was undertaken by the Department was for the purpose of ascertaining whether the goods imported and described as "Melamine" will be covered by the description "SYNTAN" appearing in the DFIA licences. In this connection, Customs Department obtained the opinion of the Central Leather Research ....

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....ments are summarized below:- (i) In the opinion of CLRI, which was obtained by the Customs Department, the two items - Melamine and Syntan are chemically different. These items are covered by different HS Codes. Melamine is covered under HS 29336.00, whereas Syntan is covered under HS Code 32021000. (ii) He further submitted that the decision in the case of Dimple Overseas (supra) relied upon by the appellant is not applicable to the present case because that case dealt with import under Value Based Advance Licence issued under Notification No.203/12 and in respect of such Value Based Advance Licences, the specific items allowed for import were not mentioned. Accordingly, he submitted that the benefit of the DFIA licence, ....

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....e imported goods to Central Leather Research Institute (CLRI), Chennai for their opinion. CLRI gave its opinion vide letter dated 20.02.2014 as follows:- "Melamine cannot be used as such in leather processing as "SYNTAN". It is a monomer, which is processed further to produce polymeric melamine SYNTANS." 10. From the opinion expressed by the expert body, CLRI, it is easy to see that "Melamine" is different from Syntan. It is further seen that the HSN Code for Melamine as well as Syntan are different. Melamine is covered under HS Code 29336100 as organic chemical, whereas Syntan is covered under 3202 as Syntan Organic Tanning substance. HS codes clearly tell us that the two chemicals are entirely different and this fact has also ....