Advocated By :   Shri V.N. Deshpande, Advocate, for the Appellant.

Shri V.K. Dahiya, JDR, for the Respondent.

[Order per : Shri Gowri Shankar, Member (T)]. - The question for consideration in this appeal is whether vanadium oxy-tri chloride and ethyl aluminium sequil chloride imported by the appellant are to be classified under heading 3815.90 as claimed by the appellant or under chapters 28 and 29, as held by the Commissioner (Appeals) in the order impugned in this appeal.

2. Heading 3815.90 is for reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included. Sub-heading 11, 12 and 19 are for supported catalysts and sub-heading 90 for other.

3. The contention of the advocate for the appellant that the two products find use as catalyst, and that the appellant's case for classification of the goods under heading claimed is based on its submission that the two products have uses as catalysts, and that vanadium oxy-tri chloride. There is no dispute that each of these products find mention in the Hawley's Condensed Chemical Dictionary as a catalyst in polyoly reactions. We also accept the submission made by the advocate for the appellant that the goods are so used by it. However, it is not disputed by the advocate for the appellant that each of the two products is a separate chemically defined compound. If that is the case, by application of Note 1(a) to Chapter 38, the products would not be eligible for classification under sub-heading 3815.90. That note chemically defined compounds other than those specified in the rule. The fact that the heading itself excludes goods not elsewhere specified also leads to the same result. This in fact is clarified by the Harmonised System of Nomenclature Explanatory Notes to this heading, a reference to which is justified, since the heading is a reproduction of the heading in the HSN Explanatory Note. The notes (at page 575 of 1996 edition) indicates as follows :

This heading covers preparations which initiate or accelerate certain chemical processes. Products which retard these processes are not included. These preparations fall broadly into two groups.

(a)    Those of the first group are, in general, composed either of one or more active substances deposited on a support (known as “supported catalysts”) or of mixtures with a basis of active substances. In the majority of cases, these active substances are certain metals, metallic oxides, other metallic compounds or mixtures thereof. The metals most frequently used as such or as compounds are cobalt, nickel, palladium, platinum, molybdenum, chromium, copper or zinc. The support, sometimes activated, generally consists of alumina, carbon, silica gel, siliceous fossil meal or ceramic materials. Examples of “supported catalysts” are supported Ziegler or Ziegler-Natta types.

(b)   Those of the second group are mixtures with a basis of compounds whose nature and proportions vary according to the chemical reaction to be catalysed. These preparations include:

(i) “free radical catalysts” (e.g., organic solutions of organic peroxides or of azo compounds, redox mixtures);

(ii) “ionic catalysts” (e.g., alkyllithium);

(iii) “catalysts for polycondensation reactions” (e.g., mixtures of calcium acetate with antimony trioxide).

The preparations of the second group are generally used in the course of manufacture of polymers. This heading does not include:

(a) Spent catalysts of a kind used for the extraction of base metals or for the manufacture of chemical compounds of base metals (heading 26.20) and spent catalysts of a kind used principally for the recovery of precious metal (heading 71.12).

(b) Separate chemically defined compounds (Chapter 28 or 29).

(c) Catalysts consisting solely of metals or metal alloys in the form of finely divided powder, woven gauze, etc. (Section XIV or XV).

(d) Prepared rubber accelerators for use in the vulcanisation of rubber (heading 38.12).”

4. The notes specifically exclude classification of separate chemically defined compound of chapter 28 or 29.

5. The provisions of Rule 3(c) of the Interpretative Rules, cited by the advocate for the appellant, is of no help. Rule 3(c) only comes to play if classification cannot be determined by application of rules preceding it. By reference to terms of the headings, and the Section Notes, classification of these products under chapter 38 is excluded, as we have seen. The classification therefore would have to be decided in terms of rule 1 itself.

6. We therefore see no reason to interfere and dismiss the appeal.

Equivalent 2000 (122) ELT 0504 (Tribunal)