TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 1527
X X X X Extracts X X X X
X X X X Extracts X X X X
....cation, applicant is importing Clean Bio Zinc (NSP) and supplying it to the manufacturers of Shampoo. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) raised enclosed with the CAAR- 1 application: 2.1 DESCRIPTION OF THE PRODUCT: (a) Clean Bio^TM-Zinc (CAS No.13463-41-7) is 48% aqueous dispersion of Zinc Pyrithione as an active ingredient that has ultra-fine particles of zinc pyrithione, a dispersant and a stabilizing agent. Copy of product literature provided by foreign supplier M/s. Kolon Life Science, Inc., Korea, is submitted by the applicant. (b) Pyridine is an aromatic heterocyclic series characterized by a six- membered ring structure composed of five carbon atoms and one nitrogen atom. The simplest member of the pyridine family is pyridine itself, a compound with molecular formula C5H5N. (c) Pyridine N-oxide. Oxidation of pyridine occurs at nitrogen to give pyridine N-oxide. The oxidation can be achieved with peracids C5H5N + RCO3H → C5H5NO + RCO2H Some electrophilic substitutions on the pyridine are usefully effected using pyridine N-oxide followed by deoxyg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 6.7.2023 certify that the end use of Clean-Bio Zinc (NSP) is for manufacturing Anti Dandruff Shampoo and they also suggest its classification under HS Code 293339. 3. Applicant's Interpretation and contention is as follows: 3.1 It would be evident from the description, literature, reports and the usage of the Zinc Pyriothione, that Pyridine is the principle organic compounds of the aromatic heterocyclic series characterized by a six-membered ring structure composed of five carbon atoms and one nitrogen atom. Oxidation of pyridine occurs at nitrogen to give pyridine N-oxide. 3.2 Pyrithione is the conjugate base derived from 2-mercaptopyridine-N-oxide (CAS# 1121-31-9), a derivative of pyridine -N-oxide. The oxygen atom can then be removed, using zinc dust. In the crystalline state, Zinc Pyrithione exists as a centrosymmetric dimer, where each zinc is bonded to two sulfur and three oxygen. Zinc Pyriothione has a long history of use in medicated shampoos to treat dandruff and seborrheic dermatitis. 3.3 The Customs Tariff Act 1975, Chapter 2933 covers the following: HETEROCYCLIC COMPOUNDS WITH NITROGEN HETERO- ATOM(S) ONLY. 2933.39 -- Other &nbs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. 3.9 Zinc Pyrithione is a derivative of Pyridine. Derivatives of Pyridine are appearing under Sub heading 2933 39. Various derivatives of Pyridine have been specified under tariff entry 2933 39 11 to 2933 39 22. On perusal of the entries, it is found that Zinc Pyrithione although derivative of Pyridine is not appearing in the above tariff entry. 3.10 In terms of sub-heading Note 1 of Chapter 29, wherein, derivatives of a chemical compound (or group of chemical compounds) are to be classified in the same subheading as that compound (or group of comp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ur-treated bands, wicks and candles, and fly-papers).' Additionally, fungicides have a particular heading of 380892 under the Customs Tariff Act of 1975. Also, as per Explanatory notes of Chapter 29 (D) (2) 'Certain other separate chemically defined organic products, which would otherwise have been classified in Chapter 29, may be excluded when put up in certain forms, or if they have been subjected to certain treatments which leave their chemical composition unchanged. Examples are (h) Disinfectants, insecticides, etc put up as described in heading 3808. It is submitted that as per Customs Tariff Act. 1975 and Explanatory Notes Clean Bio Zinc (NSP) is appropriately and rightly classifiable under CTH 38089290 which requires CIB/RC Certificate as per the Insecticide Act, 1968. 5. A personal hearing in the matter was conducted on 16.01.2024 in office of the CAAR, Mumbai. During the personal hearing the authorized representatives of M/s. Rays Import, Advocates Shri Anil Balani and Priyasha Pawar, both reiterated their contentions filed in the application to CAAR, Mumbai. They explained that their product Clean Bio Zinc (NSP) merit classification under 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....j. In the case of M. Chandrashekar [2018 (364) E.L.T. 33 (Ker.)] 'Ethylene Di- chloride (EDC)' was classified under Chapter 29 because it was not put up in packing for retail sale. Further, the applicant submitted the flow chart of Zink Pyrithione as below: Flow Chart of Zinc Pyrithione a. 'Pyridine' is used as a solvent and to make many different products such as medicines, vitamins, food flavouring, pesticides, paints, dyes, rubber products, adhesives, and waterproofing for fabrics. (cdc gov- https://wwwn.cdc.gov > TSP > PHS > PHS). b. As per the Wikipedia 'Pyridine' is a basic heterocyclic organic compound with the chemical formula C5H5N. c. Pyridine-N-oxide is the heterocyclic compound with the formula CSHSNO. d. The N-oxides of various pyridines are precursors to useful drugs like '2- chloropyridine N-oxide' is a precursor to the 'fungicide zinc pyrithione'. e. 'Pyrithione' is a common name of an organosulfur compound with molecular formula C5H5NOS, chosen as an abbreviation of 'pyridinethione'. It is used to prepare zinc pyrithione, which is used primarily to manufacture....
X X X X Extracts X X X X
X X X X Extracts X X X X
....6.1 It is to underline that Zinc Pyrithione also known as Bis (1-hydroxy-2(1H)- Pyridinethionato-o,s)-(T-4)zinc(ZPT) having CAS/CAS RN No 13463-41-7 and IUPAC/Chemical Abstract Name as 13.1.3b.zinc bis (2-thiolpyridine-N-oxide) specifically categorised under the category of insecticide/fungicide under the Insecticide Act, 1968 The applicant themselves have submitted the various uses of this product as medicine, paint and clothing. It can be seen that the medicinal or antifungal property of the product Zinc Pyrithione (Clean Bio Zinc) is obvious as it is widely and extensively used throughout the world in manufacture of antifungal-antidandruff shampoo. It is also worth mentioning that due to antimicrobial quality this product is also used in paints and other products as a mildewcide and algaecide. Further in textile industry also, this zinc pyrithione is used as anti-microbial agent for protection against odor causing microorganism. 6.2 The section 3(e) of the Insecticide act 1968, defines Insecticides which is as follows; Section 3 (e): Insecticide means: (i) any substance specified in the schedule; or (ii) such other substance (including fungicide and we....
X X X X Extracts X X X X
X X X X Extracts X X X X
....yrethrum extract (other than standardised pyrethrum extract), or copper naphthenate in a mineral oil). Intermediate preparations, requiring further compounding to produce the ready-for- use insecticides, fungicides, disinfectants, etc., are also classified here, provided they already possess insecticidal, fungicidal, etc., properties. Since Clean Bio-Zinc has fungicidal properties, it is rightly classifiable under CTH 3808. Hon'ble Supreme Court of India in a number of decisions has held that HSN Explanatory Note is a safe and dependable guide in the matter of classification of items. In the instant case the applicant has also submitted an undertaking from its proposed buyer that the said goods has to be further used in preparation of anti- dandruff shampoo. Applicant has contended that heading 3808 will be attracted only when the product is put up in packing for retailed sale. This contention is misplaced. It can be seen that the wording used in the 'description of goods' in the column 2 in the customs tariff is very comprehensive and elaborative. In fact, as per customs tariff, products specified under CTH 3808 are insecticides, rodenticides, fung....