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1998 (1) TMI 87 - SC - CustomsWhether `Abbalide' imported by the respondents is classifiable as `an organic chemical' under Chapter 29 or a mixture of odoriferous substances falling under Heading 33.02 of Chapter 33 of the Tariff in the Schedule to the Customs Tariff Act, 1975? Held that:- 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 within Chapter 29 only if the solvent does not render the product particularly suitable for specific use rather than for general use. As per the certificate dated September 19, 1986 issued by the manufacturer the compound imported by the respondents cannot be used in the condition it is manufactured and for making it suitable for use and for retaining its suitability for use it has to be dissolved in a solvent. The need of a solvent is not only for the purpose of storage and transport of the chemical, but also for retaining the suitability of the product after it is manufactured. Its dissolution in the solvent is necessary in order to make the product suitable for use. Since the product is used only for perfumery and not for any other purpose, it has to be held that the product is intended for specific use only. In view of Clause 1(e) of the Notes in Chapter 29, it may be held that the product imported by respondents cannot be regarded as falling under Chapter 29 of the Tariff and would fall under Heading 33.02 in Chapter 33 of the Tariff. Appeal allowed.
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