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1988 (2) TMI 83 - AT - Customs
Issues Involved:
1. Classification of silicone oil/fluids under Customs Tariff Chapter 39 and Central Excise Tariff Item 15A.
2. Whether silicone oils lacking resinous or plastic properties should be classified under Chapter 39.
3. Interpretation of tariff headings and the relevance of resinous or plastic properties for classification.
Issue-wise Detailed Analysis:
1. Classification of silicone oil/fluids under Customs Tariff Chapter 39 and Central Excise Tariff Item 15A:
The primary issue in these appeals is the classification of silicone oil/fluids, specifically methyl hydrogen polysiloxane fluid, under the Customs Tariff and Central Excise Tariff. The Assistant Collector assessed these oils under Chapter 39 of the Customs Tariff and Item 15A of the Central Excise Tariff. However, the Collector (Appeals) concluded that the imported silicone oils do not conform to the descriptions in Chapter 39, as they lack resinous or plastic properties, suggesting assessment under Item 68 CET instead. The Tribunal was tasked with resolving this classification dispute.
2. Whether silicone oils lacking resinous or plastic properties should be classified under Chapter 39:
The department argued that silicones are specifically listed under Chapter 39 of the Customs Tariff and Item 15A of the Central Excise Tariff, and therefore, silicone oils/fluids must be assessed under these headings regardless of their resinous or plastic properties. The Tribunal concurred, emphasizing that a commodity must be assessed under the specific head designated for it, even if it lacks certain properties like resinous or plastic characteristics. The Tribunal noted that the specificity of the tariff heading takes precedence over the general properties of the product.
3. Interpretation of tariff headings and the relevance of resinous or plastic properties for classification:
The learned counsel for the importer argued that silicone oils/fluids, which lack resinous or plastic properties and cannot be molded or formed, should not be assessed under headings covering artificial and synthetic resins. The Tribunal, however, found this argument unconvincing. It emphasized that the classification should be based on the specific mention of silicones in the tariff headings, rather than their physical properties. The Tribunal referenced technical sources like the Kirk-Othmer Encyclopaedia of Chemical Technology, which classify silicone fluids as synthetic polymers, similar to resins and elastomers.
The Tribunal also highlighted that the Harmonised Commodity Description and Coding System and the CCCN classify silicone oils, greases, resins, and elastomers under silicones in primary forms, indicating that silicone fluids should be classified alongside other silicones. The Tribunal dismissed the argument that the lack of resinous properties should exclude silicone fluids from classification under Chapter 39 or Item 15A, as the tariff does not mandate such properties for classification.
Conclusion:
The Tribunal concluded that silicone fluids, including the imported silicone oils, should be classified as silicones under Chapter 39 of the Customs Tariff and Item 15A of the Central Excise Tariff. The appeals were allowed, and the order of the Collector (Appeals) was set aside, restoring the order of the Assistant Collector. The Tribunal's decision underscores the importance of specific tariff headings over the general properties of the product for classification purposes.