TaxTMI 
TaxTMI 
2004 (4) TMI 196
X X X X Extracts X X X X
X X X X Extracts X X X X
....t PBX, Tescol BPS-N-25, SM Print BTN which are special chemical preparations, finding application only, in the textile industry for binding/fixing of dyes and for emulsifying and softening fabrics. The appellants from the inception of their unit were classifying the above said fourteen products under Chapter Heading 3809 of the Central Excise Tariff and various classification lists filed were approved by successive Assistant Collectors after making enquiries about the composition, end-use of the products and after testing samples of the said products. (b) On 16th May, 1994, the appellants were issued Show Cause Notice demanding Central Excise duty amounting to Rs. 12,39,308/- as differential duty i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding 3906.90 and cannot be classified under 3809.90. It was also held that the additives added to the acrylic polymers of their products are of the type and to the extent so as to take them out of the scope of Chapter Heading 3906.90. It was held by the CCE(A) that the end use of the product will only be relevant for the purpose of classification if that is specifically provided in the Tariff Entry and Heading 3809 provides for classification with regard to end use, although the fact remains that their product remains classified under Specific entry 3906 and the additives and their quantity do not permit them to be taken out of the scope of 3906. Hence this appeal. 2. After hearing both sides and considering the material especially the HSN....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd use achievements. (c) The entity under classification considerations are undoubtedly preparations and not solutions. (d) The competing headings, after determination of the nature of the entity are 3809 and 3906. Examining the scope of coverage under these four digit headings it is found that the HSN notes read and exclude vide clause (g) Emulsions, dispersions or solutions of polymers (Heading 32.09 or Chapter 39) while there is no exclusion clause to 3909. However primary forms of plastics would get covered 'Primary forms' under chapter are defined under Note No. 6 and apply only to - "Headings 39.01 to 39.14 cover goods in primary forms only. The expressi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he weight of the solution, are excluded from this Chapter and fall in Heading 32.08 [see Note 2(d) to this Chapter]. Liquid polymers without solvent, clearly identifiable as being intended for use solely as varnishes, (in which the formation of the film depends on heat, atmospheric humidity or oxygen and not on the addition of a hardener), are classified in Heading 32.10. When not so identifiable, they fall in this Chapter." (Emphasis supplied) The reading of the exclusion clause in these notes for primary forms of plastic, in liquid/paste form, as extracted herein above, when read with the specific stipulation of the inclus....