TaxTMI 
TaxTMI 
2022 (9) TMI 1561
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....012. The declared weight was 17700 kgs and declared assessable value of the goods was Rs. 1,63,9671 (Rupees One Lakh Sixty Three Thousand Nine Hundred and Sixty Seven Only). Importer claimed BCD benefit under Notification 021/2002 Sr. no. 480 which is available to "Polymers of Vinyl Chloride". 2.2 Assessing officer was of the view that the item under import was "PVC compound T2 & not the polymers of vinyl chloride. Therefore appellant was asked to justify their claim for exemption. Appellant explained that item under import is PVC compound & is a mixture of ingredients like resin, plasticizer, filler etc. and also submitted that they didn't have any facility to Manufacture PVC Compound & therefore, they were not importing PVC resin. 2.3 After consideration of submissions assessing officer decided the issue of exemption as per the order as follows: "ORDER In view of the above, I hereby deny the BCD exemption under notification no. 21/02-Sr. No. 480 claimed by importer & instead extend the benefit of Sr. no. 559 of Notification No. 21/2002-Cus for the goods imported under Bill of Entry No. 6170246 date 05.03.2012 This order is passed without any prejudice to any other ac....
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.... the finished material or may be dispersions (emulsions and suspensions) or solutions of the uncured or partly cured material. In addition to substances necessary for "curing" (such as hardeners (cross-linking agents) or other co reactants and accelerators), these liquids or pastes may contain other materials such as plasticizers, stabilizers, fillers and colouring matter, chiefly intended to give the finished products special physical properties or other desirable characteristics. The liquids and pastes are used for casting, extrusion, etc., and also impregnating materials, surface coatings, bases for vanishes and paints, or as glues, thickeners, occulants, etc. * Powder granules and flakes: In these forms they are employed for moulding, for the manufacture of varnishes, glues, etc. and as thickeners, flocculants, etc. They may consist of the unplasticized materials which become plastic in the mo process, or of the materials to which plasticizers have been added; these materials inay incorporate fillers (e.g. wood flour, cellulose, textile fibers, mineral substances, starch), colouring matter or other substances cited in Item (1) above. Powders may be used, for example, to coal ....
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.... available in the internet for reference purpose only. This is to show Your Lordships as to how much technical detail the Material Data Sheet should contain. Such a Material Data Sheet or an Expert opinion would have helped the Department or the Hon'ble Tribunal to arrive at an informed conclusion. But the Material Data Sheet submitted by the Appellant contains nothing more than the chemical composition of impugned goods.. * CITATION- HSN EXPLANATORY NOTES o (A) Chemically defined compounds (Chapter Note 1) A separate chemically defined compound is a substance which consists of one molecular species (e.g., covalent or ionic) whose composition is defined by a constant ratio of elements and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell. Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter. Accordingly, a product consisting of saccharin mixed with lactose, for example, to render the product suitable for use as a sweetening agent is excluded (see Explanatory Note to....
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....* Omnexus o Basic Forms of PVC Polyvinyl Chloride is widely available in two broad categories: Flexible and Rigid. But, there are more types like CPVC, PVC-O and PVC-M. * Plasticized or Flexible PVC (Density: 1.1-1.35 g/cm"): Flexible PVC is formed by the addition of compatible plasticizers to PVC which lower the crystallinity. These plasticizers act like lubricants resulting in a much clearer and flexible plastic. This type of PVC is sometimes called as PVC-P. * Unplasticized or Rigid PVC (Density: 1.3-1.45 g/cm): It is a stiff and cost-effective plastic with high resistance to impact, water, weather, chemicals and corrosive environments. This type of PVC is also known as UPVC, PVC-U or PVC. * Chlorinated Polyvinyl Chloride or perchlorovinyl: It is prepared by chlorination of PVC resin. High chlorine content imparts high durability, chemical stability and flame retardancy. CPVC can withstand a wider range of temperatures. * Molecular Oriented PVC or PVC-O: It is formed by reorganizing the amorphous structure of PVC-U into a layered structured. Bi-axially oriented PVC has enhanced physical characteristics (stiffness, fatigue resistance, lightweight, etc.). * Modified ....
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....ation 21/2002 which allows concessional rate of 7.5% BCD read as under: Sr. No. CTH Description of the goods 559 3901 to 3915(except 3908) All goods Comparison of both the serial numbers clearly indicate that the goods classifiable at CTH-3904 may fall under Sr. No. 480 provided the total polymer counts are 95% or more by weight and rest of the product having polymer contents less than 95% are covered under Sr. No. 559. 5.7 In view of the above discussion I conclude that notification benefit under Sr. No (480) of notification 21/2002 is not available to impugned goods and has rightly be denied." 4.3 Admittedly in the present case the appellant had filed the Bill of Entry claiming the classification of goods under the CTH 39042290, and claimed the exemption as per Sl No 480 of the Notification No 21/2002-Cus dated 01.03.2002. The classification as claimed by the appellant has not been disputed by the revenue. The only dispute is in respect of the exemption claimed by the appellant. Revenue authorities have held that appellant is not entitled to exemption at Sl No 480 of the said notification but to Sl No 559 of the same notification. Since the entries in the notificati....
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....so contains compounds of PVC and copolymers of PVC such as, vinyl chloride-vinyl acetate copolymers, vinylidene chloride polymers, fluro polymers. Thus, all forms of PVC merit classification under Heading 3904. It is also provided in subheading note 1(b) that chemically modified polymers should be classified under sub-heading appropriate to the unmodified polymers. As per Note 6, primary forms has been defined to include liquids and pastes, including dispersions and solutions and blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms. As per HSN Explanatory note, primary forms may contain other materials such as plasticizers, stabilizers, fillers and colouring matter, chiefly intended to give the finished products special physical properties or other desirable characteristics. From the Encyclopedia of Chemical Technology, copy of which has been submitted by the appellant, it is seen that PVC is chlorinated so that it can be used in high temperature applications such as hotwater piping. Therefore, chlorinated PVC remains under Heading 3904 as primary forms of PVC. Even if it is assumed that by chlorination, PVC has been chemic....