2000(08)LCX0265
IN THE CEGAT, WEST ZONAL BENCH, MUMBAI
S/Shri Gowri Shankar, Member (T) and J.N. Srinivasa Murthy, Member (J)
COMMISSIONER OF C. EX. & CUS., MUMBAI-II
Order No. 2707/2000/WZB/C-I, dated 10-8-2000 in Appeal No. E/819-R/95-Bom.
Advocated By : Shri J.M. George, JDR, for the Appellant.
Dr. H.J. Mehta and Shri M.R. Nadkarni, Consultant, for the Respondent.
[Order per : Gowri Shankar, Member (T)]. - The question for consideration in this appeal is the classification of cellulose acetate phthalate. In the order impugned in this appeal the Commissioner (Appeals) has accepted the classification list filed by the manufacturer for the product under heading 29.42, overruling the classification determined by the Assistant Collector under heading 29.12.
2. We have heard the departmental representative and Dr. H.J. Mehta and Shri M.R. Nadkarni, Consultant.
3. Heading 39.12 covers cellulose and its chemical derivatives and cellulose ethers not elsewhere specified or included in primary forms. The alternative heading 29.42 is a residuary heading for other organic chemical. The Commissioner places considerable reliance on the fact that the substance is a chemically defined organic compound. That is entirely irrelevant. Every commodity that is classifiable under chapter 39 is in fact a chemically defined organic compound. The fact that the goods are used as an ingredient for bulk drugs being used to coat tablets again is irrelevant. We are concerned with the classification of the goods between the two chapters which does not specify end-use. The fact that the goods figure in the pharmacopoeia is therefore also irrelevant. The Commissioner’s reliance on note to chapter 39 is misplaced. That note defines “plastic”. We are, however, not concerned whether the product is plastic or not. Chapter 39 also covers goods, which are yet to be plasticised. Chapter 39.12 includes chemical derivatives of cellulose. It is not disputed that the product in question is chemical derivative of cellulose. It is obtained by reaction of cellulose acetate with phthalic acid, thus a product of a chemical reaction. Heading 39.12 is more specific and therefore would apply to it.
4. The appeal is accordingly allowed, the impugned order set aside and the Assistant Collector’s order restored.
Equivalent 2000 (121) ELT 816 (Tribunal)