Adhesive Classification Dispute Resolved: Tribunal Favors Chapter 35-06; Department's Appeal Time-Barred Since 2010.

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....The case involved the classification of a mixture of Melamine Formaldehyde Resin and Cardanol Phenolic Formaldehyde used as Adhesive/Glue/Resin for the manufacture of a final product. The issue was whether it should be classified under Chapter 35-06 as claimed by the appellant or under Chapter 39-09 as alleged by the Department. The Tribunal held that such mixtures used as adhesive/glue/resins for manufacturing laminates are classifiable under Chapter heading 35-06 based on established precedents. It was noted that the Revenue failed to prove the marketability of the product, which is essential for determining dutiability. Regarding time limitation, it was held that the demand up to December 2010 was beyond limitation as the facts were known to the Department since 2006. The appeal was allowed as the impugned order was deemed unsustainable in law.....