TaxTMI 
TaxTMI 
2005 (12) TMI 157
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....rporation, Mumbai (Appellants) are inter alia engaged in the manufacture of chemicals, pesticides, etc. falling under Chapter 38 of the Customs Tariff Heading Act. They also engaged in trading of imported Boric Acid. The appellants imported a consignment of 20 MTs of Boric Acid. They initially filed a bill of entry for warehousing dated 29-11-04 and later on filed a bill of entry of Home consumption, seeking clearance thereof under DFRC Scheme. The eligibility for clearance of DFRC was under examination before the concerned authorities of customs. The Central Board of Excise and Customs vide Circular No. 61/2004, dated 28-10-2004 clarified that 'Boric Acid' being an "Insecticide" mentioned in the Schedule to the Insecticides Act, 1968, same....
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....he heading which provides the most specific description shall be preferred to heading providing a more generic description. Besides, it was also contended that Boric Acid is specifically mentioned in HSN Chapter 28 and the term "insecticide", mentioned in Chapter 38 is generic in nature. By applying Rule 3(a) of the said Rules, "Boric Acid" shall be eligible for classification under Chapter 28 being a specific entry. Following case laws were cited in support of the claim. (i) VAC Met. Corp. v. Superintendent Central Excise - 1985 (22) E.L.T. 330 (S.C.) (ii) Moorco v. Collector - 1994 (74) E.L.T. 5 (.S.C.) (iii) &nb....
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....ITC-HS. Further, their contention is that the Board Circular is not binding on them to contrary to the Customs Tariff Act. The Boric Acid is multi-furious use and in this regard they have relied upon the Kirk Othmer's Encyclopedia of Chemical Technology, 4th Edition, Vol. 4, the relevant text is extracted as under :- USES : (i) Boric acid has surprising variety of applications in both industrial and consumer products (6.57). It serves as a source of B2O3 in many fused products, including textile fiber glass, optical and sealing glasses, heat-resistant borosilicate glass, ceramic glazes, and porcelain enamels (see ENAMELS, PORCELAIN AND VITREOUS). It also serves as a component of fluxes f....
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....f cellulosic materials. Applications include treatment of wood products, cellulose insulation, and cotton batting used in mattresses (see FLAME RETARDANTS). (vi) Because boron compounds are good absorbers of thermal neutrons, owing to isotope 10 B, the nuclear industry has developed many applications. High purity boric acid is added to the cooling water used in high pressure water reactors (see NUCLEAR REACTORS). 9.Further their contention is that the Boric Acid correctly falls under Heading 28.10 of the Customs Tariff/Excise Tariff/ITC-HS as it specifically covers boric acid by description. (i) Sub-heading 281000.20 of the Customs Tariff by name, s....
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....eading does not include : (a) Tetrafluoroboric acid (fluoroboric acid) (Heading 28.11) (b) Glyceroboric acid (Heading 28.20) 10.The HSN Explanatory Notes does not say that boric acid is also used as insecticide or pesticide, presumably because boric acid is predominantly used as raw material. 11.The Supreme Court in the following cases has held that HSN Explanatory Notes are safe guide for interpreting the Tariff Entries (both under the Central Excise Tariff and Customs Tariff): (a) CCE, Shillong v. Wood Craft Products Ltd. - 1995 (77) E.L.T. 23 (S.C.) (b) C....
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...., herbicides, anti-sprouting products and plant-growth regulators, disinfections and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers)". 17.HSN Explanatory Note to the products of Heading 38.08 can be divided into the following groups : (I) Insecticides. Insecticides include not only products for killing insects, but also having a repellent or attractant effect. The products may be in a variety of forms such as sprays or blocks (against moths), oils or sticks (against mosquitoes), powder (against ants), strips (against flies), cyanogens gas absorbed in diatomite or paperboard (....