TMI Blog2010 (7) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... llants submitted that in this case there is no dispute that imported goods are processed Bentonite. Chapter note 1 of Chapter 25 of Customs Tariff provides that except where their context otherwise requires headings of Chapter 25 covers only products which are in the crude state or which have been washed (even with chemical substance eliminating the impurities without changing the structure of the product) crushed ground powdered, levigated, lifted, screened, concentrated by flotation, magnetic separation or other mechanical or physical processes. During the relevant time Bentonite was specifically mentioned against the CTH 2508.10. He also submitted that during the relevant time according to ITC (HS) classification of export and import items, processed Bentonite (including activated and ground) was covered under heading 2508.10.02. Further, Note-1 (a) to Chapter 38 provided that chapter 38 which does not cover separate chemically defined elements or compounds. Since Bentonite is separately chemically defined compound and specifically covered under Chapter 25 is covered under Chapter 25 only and not under CTH 3802, as claimed by the department. He further relied upon the decision b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Other clay (not including expanded clays of heading 68.06), and alusite, kyanite and sillimanite, whether or not calcined; mullite, chamotte or dinas earths. 2508.10 Bentonite Chapter/Heading 3802.90 38.02 Activated Carbon; activated natural mineral products; animal black, including spent animal black. 3802.90 Others" Note-1 - Except where their context or Note 4 to this Chapter otherwise requires, the headings of this Chapter cover only products which are in the crude state or which have been washed (even with chemical substances eliminating the impurities without changing the structure of the product) crushed, ground powdered, levigated, sifted, screened, concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallization), but not products that have been roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading. 6. From the above reading of relevant heading and Chapter note what emerges is that the headings of Chapter 25 cover only products which are in the crude state or which have not undergone any change in the structure of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is stated to have specific PH ranging from 2 to 5 depending on the brand and grade of the product. The activation is some times also done by soda ash resulting in a product which is alkaline in nature with a PH ranging from 8.5 to 10.5. After acid or alkali activation, the bentonite undergoes washing, grinding, heating and packing resulting in a new chemical product, namely, and bleaching earth/activated clay, etc. This finished product is said to have properties like absorptive capacity, acid properties, catalytic properties, ion exchange capacity and particle size distribution which is highly useful for various industrial applications like purification, filtration, bleaching, etc. HS Explanatory notes to heading 38.02 states that the heading includes activated clays and activated earths, but excludes natural clayey substances." 8. From the circular and the report of the supplier and the test report of chemical examiner, it is quite clear that the product imported by the appellant has been treated with acid. In the absence of specific report regarding change in the structure, the only conclusion that can be drawn by reading of above three documents would be that the item i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards their relevance on Dunlop India Limited and MRF Limited v. UOI, Para 37 of this decision which is relevant is reproduced :- "37. It is good fiscal policy not to put people in doubt and quandary about their liability to duty, when a particular product like V.P. Latex known trade and commerce in this country and abroad is imported, it would have been better if the article is eo nomine, put under a proper classification to avoid controversy over the residuary clause. As a matter of fact in the Red Book (Import Trade Control Policy of the Ministry of Commerce) under Item 150, in Section II, which relates to "rubber, raw and gutta percha, raw", synthetic latex including vinyl pyridine latex and copolymer of styrene butadiene latex are specifically included under the sub-head "Synthetic Rubber". We do not see any reason why the same policy could not have been followed in the I.C.T. book being complementary to each other. When an article has, by all standards, a reasonable claim to be classified under an enumerated item in the Tariff Schedule, it will be against the very principle of classification to deny it the parentage and consign it to an orphanage of the residuary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed'. It is treated as a free item under the policy "if registered and not prohibited for import under the insecticides Act, 1968 and formulations thereof." Undeniably insecticides, pesticides etc. in whatever form are covered by the Insecticides Act. The description demonstrates that bulk concentrates and formulations are covered by the sub-heading 'Aldrin'. The use of the same words in the Tariff Heading in the Schedule to the 1985 Act as has been used for the purposes of the Import Trade Control Policy is an additional reason for holding that insecticides, pesticides concentrates in bulk forms are includible within the Tariff Heading. (See Dunlop India Ltd. v. Union of India and Others 1976 (2) SCC 241.)" 13. We do not find that any help is coming out to the appellants from this decision. The appellants would like to submit that ITC (HS) Classification is required to be taken into account. However, it is a settled law that once tariff headings read with chapter notes are clear and there is no need to consider other aspects, for classification. The purpose of ITC (HS) classification is entirely different and purpose is not the classification of the goods for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
