2024 (5) TMI 631

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....entry under self assessment procedure. The dispute relates to classification of 'PVC resin Impact Modifier 'Kane ACE B 22'. The contesting classification are Chapter Tariff Heading 3902 9090 as claimed by the appellant or custom heading 3906 9000 as claimed by the Revenue. The eligibility to full exemption from basic custom duty under notification 46/2011-Cus dated 01.06.2011 depends on the above criteria. The chemical composition of 'PVC resin Impact Modifier 'Kane ACE B 22' is described as under: Material - monomers Content in percentage by weight 1. Butadiene 47.5-52.5% 2. Methyl-methylacrylate 15.0-20.0% 3. Styrene 27.5-32.5% 4. Acryl Ester 0.1-5.0% Revenue has relied on the Chapter Note 4 to Chapter 39 ....

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.... those which equally merit consideration." He argued that it is amply clear that Butadiene is a main content by weight in the imported product than any other co-monomer, therefore, the product should be classified under the Custom Tariff Heading under which the Butadiene Polymer is covered. Learned counsel pointed out that Butadiene falls under Chapter heading 3902. Learned counsel further argued that Chapter note 6 of Chapter Tariff Heading 39 reads as follows: "Chapter Note 6 of CTH 39 of CTA, 1975 defines the 'Primary Forms' - headings 3901 to 3914, the expression "primary forms" applies only to the following forms: (a) Liquids and pastes, including dispersions (emulsions and suspension) and solution; (b) Bl....

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....n Butadiene predominates and therefore in terms of Chapter note 4, the goods have to be classified under heading 3902 9000. Learned counsel further pointed out that they are importing the said goods regularly and the same are being classified under Chapter Heading 3902 without any kind of objection from the Revenue. He argued that even after this case, the goods are being imported under the Custom Tariff Heading 3902. He submitted that the following bills of entries: S.N Product Name BOE No. BOE Date Ass. Value Qty KG Part 1 Kane ACE B-22 7354044 25.03.2020 3124687/- 22000 ICD Khodiyar 2 Kane ACE B-22 8497021 17.08.2020 2708062/- 22000 Hazira 3 Kane ACE B-653H 7354145 ....

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.... modified polymers are to be classified in the subheading named "Other", provided that the chemically modified polymers are not more specifically covered by another subheading. (4) Polymers not meeting (l), (2) or (3) above, are to be classified in the subheading, among the remaining subheadings in the series, covering polymers of that monomer unit which predominates by werght over every other single comonomer unit. For this purpose, constituent monomer units of polymers falling in the same subheading shall be taken together. Only the constituent comonomer units of the polymers in the series of subheadings under consideration are to be compared. (b) Where there is no subheading named "Other" in the same series : (....