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2023 (9) TMI 1392 - CESTAT MUMBAIClassification of imported goods - coloured rubber granules - import policy restrictions - whether the importation of goods are ‘Restricted’ or ‘Free’ depending upon classification of the imported goods under the First Schedule to the Customs Tariff? HELD THAT:- The description of the heading for 4001 specify that it covers products of ‘natural rubber in primary forms or in plates, sheets or strip’; similarly the description of heading 4002 provides that it covers ‘Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip’. Further, heading 4003 covers ‘reclaimed rubber in primary forms or in plates, sheets or strip’ and heading 4004 covers under its scope ‘waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained therefrom’. The imported goods are to be treated as finished goods instead of raw rubber in any primary forms. Thus by the scope of coverage of the chapter heading 4001 and 4002 and its tariff entries, relative Chapter Note 5(A), inasmuch as there is presence of pigments/colouring matter, carbon black and accelerators in the imported goods, it does not merit classification under heading 4001 as well as 4002. The imported goods is presented in granules of size 2mm to 4mm which is one of the primary form and are being used for outdoor rubber tiles, indoor rubber mats, rubber pavers etc. and thus are covered under chapter heading 4003. The relevant import policy for goods of chapter heading 4003 are ‘Free’ and there are no restrictions on import. Thus, the impugned order proposing absolute confiscation of imported goods classifying the imported goods under tariff item 4004 0000 is not legally sustainable. From the plain reading of the entry in the restrictions placed under Basel No. B 3080 of Part-B to Schedule III, it is clear that this entry do not cover the granules of rubber derived from truck tyres. The Prior Informed Consent procedure and permission to be obtained by the importer is applicable only to ‘waste, parings and scrap of rubber’. Hence, even otherwise, irrespective of the policy condition not being applicable to imported goods of chapter 4003, there is no restriction from the point of HW Rules, 2016. The impugned order passed by the Commissioner of Customs (Appeals), JNCH, Nhava Sheva, Mumbai-II set aside - appeal allowed.
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