TaxTMI 
TaxTMI 
1985 (4) TMI 71
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.... Tariff Act, 1975. The Customs Department however, assessed the said goods to Customs duty under Tariff Item 32.04/12(1) of the Customs Tariff Act, 1975. Accordingly, the petitioners were called upon to pay a total customs duty of Rs. 22,422.80 including the basic customs duty, auxiliary duty and countervailing duty. According to the petitioners the correct total customs duty leviable was Rs. 13,514.25. The petitioners, however, paid the total customs duty demanded under protest. Thereafter on 3rd September 1977 the petitioners filed a refund application for the refund of excess customs duty amounting to Rs. 9908.55. This refund application was made by the petitioner on the basis that the goods imported by them were covered by Tariff Item 2....
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....ial replacement of expensive white pigments, (b) improved effect of the white pigments used, (c) good effect as anti-settling agent, (d) maintenance of constant viscosity during storage, (e) good weathering properties, and (f) reduction in dirt pick-up". 3. The dispute relates to classification under the relevant tariff entry. Chapter 28 of Schedule I to the Customs Tariff Act, 1975 has the heading "Inorganic chemicals, organic and inorganic compounds of precious metals, of rare earth metals, of radio-active elements and of isotopes. Note 1 (a) states that except where the context otherwise requires this chapter is to be taken to apply only to (a) separate chemical elements and separate chemically defined compounds whether....
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.... Terms Relating to Paints (Second Revision) published in April 1984 gives definition of technical terms widely used in paint Industry. It defines extender as an inorganic material in powder form, which has a low refractive index and consequently little obliterating power, but is used as a constituent of paints to adjust the properties of the paint, notably its working and film forming properties and to avoid settlement on storage. 5. "Filler" is defined as a composition used for filling fine cracks or indentations to obtain a smooth, even surface preparatory to painting. 6. Putty is defined as a highly pigmented stiff plastic material which is applied by a knife and which normally hardens on air-drying, chemical curing or stoving. ....
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....dition, by Hawley. The word "filler" is defined there as "an inert mineral powder of rather high specific gravity (2.00-4.50) used in plastic products and rubber mixtures to provide a certain degree of stiffness and hardness, and to decrease cost". 9. The extender is defined in the same dictionary as "a low-gravity material used in paint, ink, plastic and rubber" formulations chiefly to reduce cost per unit volume by increasing bulk. Extenders include diatomaceous earth, wood flock, mineral rubber, liquid asphalt, etc. 10. Mr. Sethna, learned Counsel for the respondents emphasised the fact that in this dictionary fillers are considered as similar to extenders and diluents in their cost reducing function. In other words both fillers an....
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....als". According to the respondents only those aluminium silicates which are considered under Note (K) as being used in the glass industry and as an insulator are covered under Tariff Item 28. This submission does not appear to be correct because all double and/or complex silicates are included in Tariff Item 28.48. 12. Thus Tariff Item 32.04/12 does not cover Aluminium Silicate P. 820 imported by the petitioners. These goods are covered by Tariff Item 28.01/58 which deals with chemical compounds not elsewhere specified. It is nobody's case that the said goods are covered by any other tariff item. 13. Since the respondents have chosen to tax the petitioners on the basis that their goods fall under Tariff Item 32.04/12, it was for the r....
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....tem 32.04/12. The decision, therefore, of the Customs Authorities is not based on any cogent evidence before any of the officers concerned. Thus, for example, in the order which is passed by the Assistant Collector of Customs which is dated 28-11-1977 the Assistant Collector of Customs has held that the goods imported are not pure aluminium silicate but there is some other item mixed in it and therefore, the goods cannot be classified under Tariff Item 28.01/58. He has also said that because the goods are used in paints, therefore, they must be classified under Tariff Item 32.04/12. There is a clear non-application of mind to the material produced by the petitioners before the Assistant Collector of Customs. In the order passed by the Colle....