TaxTMI 
TaxTMI 
1998 (1) TMI 87
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....hedule to the Customs Tariff Act, 1975 (hereinafter referred to as `the Tariff'). 2. The facts, briefly stated, are as under. 3. M/s. S.H. Kelker & Co. Ltd., the respondent in C.A. No. 276 of 1991, had imported a consignment of `Abbalide' in the year 1986. It was assessed to customs duty after being classified as falling under Chapter 29 of the Tariff. After the samples were got tested by the customs authorities and after receiving the Test Report, it was found that the item was a mixture with a basis of odoriferous substance and a show cause notice dated March 2, 1987 was issued requiring the respondent to show cause why it should not be treated as falling under Heading 33.02 of the Tariff. After considering the reply submitted by th....
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....ector for examining the question of classification of the product under the Heading and sub-heading of Chapter 29 of the Tariff after giving both the sides due opportunity of representation. 5. Chapter 29 of the Tariff relates to "Organic Chemicals" and is divided into various heads. The learned Counsel for the respondents has submitted that the articles in question fall under the group "Aromatic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives under Heading 29.17. In the Notes at the beginning of Chapter 29, it is stated as follows :- "1. Except where the context otherwise requires, the headings of the Chapter apply only to : (a) Separate chemically defined organic compounds, whether or....
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....halate." In the said report reference was made to Technical Opinion No. 1364/17-2-1987 relating to the compound Galaxolide 50 wherein it was stated : "This product is imported in solution form for convenience in handling as seen from previous cases of import. In this connection, Note 1(e) under Chapter 29 may be seen which would preclude classification under this Chapter. In my opinion this product merits to be considered as mixture with a basis of odoriferous substance (Galaxolide) which finds mention under Heading 33.02 CTA." 8. `Abbalide' which was imported by the respondent and `Galaxolide' in respect of which the said opinion was given are identical and are different brand names for the same compound. The technical literature on ....
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....urged that since the compound is particularly suitable for specific use as perfumery and is not meant for general use, it could not be regarded as classifiable under Chapter 29. 10. Ms. Amrita Mitra, the learned Counsel appearing for the respondent in C.A. No. 276/91 and Shri H.N. Salve, the learned Senior Counsel appearing for the respondent in C.A. Nos. 10082-83/95, have, on the other hand supported the impugned judgment of the Tribunal and have urged that the Tribunal has rightly held that `Abbalide' imported by the respondents was classifiable under Chapter 29 and it could not be classified as a mixture of odoriferous substances under Heading 33.02 of the Tariff. The submission of the learned Counsel is that Heading 33.02 of the Tari....
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.... that the mixture is used as a raw material, viz., perfume in industry. It can, therefore be said that the compound is a mixture with a basis of an odoriferous substance and since it is for use as raw material in industry, it would be classifiable under Heading 33.02. 12. In our opinion, the Tribunal was in error in construing Clause 1(e) of Chapter 29 and in holding that the said product was classifiable under Chapter 29. Clause 1(e) of the Notes in Chapter 29 postulates that if a product mentioned in sub-clauses (a) (b) or (c) of Clause 1 is dissolved in a solvent and the solution constitutes a normal and necessary method of putting up these products adopted solely for the reasons of safety or for transport then the product would fall ....