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TMI Blog1997 (12) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... Polyvinyl Alcohol Powder in aqueous solution and adding additives. These were marketed under the trade name of Titebond. The classification list Nos. CL/TRAPL/1/86-87, dated 20-11-1986, CL/TRAPL/2/86-87, dated 17-6-1986 and No. CL/TRAPL/3/86-87, dated 30-6-1986 for different grades were approved by the Department under Chapter No. 3501.90. The classification list No. CL/TRAPL/4/86-87, dated 20-11-1986 was kept pending for approval subject to chemical test and classification list No. CL/TRAPL/ 5/87, dated 14-1-1987 was approved provisionally under Rule 9(b), under Chapter No. 3501.90. 3. It was his submission that the Assistant Collector vide his order dated 21-9-1987 informed that the sample of Titebond P-15 has been found as `aqueous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 125/87, dated 29-4-1987 describes glues and adhesives falling under sub-heading No. 3506.00 as "Glues and adhesives based on plastics." 6. It was also his submission that the Collector (Appeals) has failed to appreciate the basis for classification decided by Supreme Court in their order in the matter of Collector of Customs v. Bhor Industries Limited reported in 1988 (35) E.L.T. 346 (S.C.) in which Santicizer 429 was classified as Plasticizer under Chapter 3801.19(6) and not under Chapter 39 in spite of its being a polymer plasticizer. Similarly, the Explanatory Notes to Chapter 35.05 of HSN differentiate between Dextrins and other modified starches (Chapter 3505.10) and Glues based on them (Chapter 3505.20). 7. Further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified on the basis of its application and not its chemical nature as can be seen from various items of the Tariff. It was also his submission that the change in the wording of Chapter Note 6 in 1988-89 Budget indicates that prior to this change, product could not be classified under Chapter 39 if no chemical synthesis was involved (in view of Chapter Note 3). Without prejudice to the above submissions, he would also like to mention that in any case, the basis of calculation shown in the work-sheet attached with the show cause notice was also incorrect. 13. It was their contention that their product was rightly classifiable under Chapter 35 as adhesive and no mis-declaration was involved. 14. We have considered the above sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows :- "6. (a) In heading Nos. 39.01 to 39.14, the expression `primary forms' applies only to the following forms :- (i) Liquids and pastes, including dispersions (emulsions and suspensions) and solutions. (b) Notwithstanding anything contained in Note 3 to this Chapter, heading Nos. 39.01 to 39.14 shall also include primary forms obtained from conversion of another primary form, falling under the same heading, and such conversion shall amount to "manufacture"." The HSN provisions regarding Glues and Adhesives read as follows :- "35.06. - Prepared glues and other prepared adhesives, not elsewhere specified or included; Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of classification of glues. The chemical nature of a product is important and so is its use but which of these two or both of them are required to be taken into consideration or which one of them will have to be given predominance depends upon the nature of the tariff entry, the language of the heading and chapter notes (read with the rules of interpretation). In this particular case, it is apparent that it is the criteria of use which has to be given due consideration. In this respect, the appellants' claim that their product is being used as an adhesive has not been contradicted or shown to be wrong. Furthermore, in a similar case of M/s. Din Chemicals & Coatings v. CCE, Calcutta reported in 1995 (76) E.L.T. 112, a three Member Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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