J K SYNTHETICS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Challenge in this writ petition is to the two orders, namely, (1) dated 16 March 1982 passed by the Asstt. Collector, Central Excise & Customs, Division Kota holding that the Polyester Chips (Textile Grade) are classifiable under the Customs Tariff Heading No.39.01/6 and further the Landing charges are to be Included In the C.I.F. value for the purpose of section 14 of the Customs Act, 1962; and (ii) dated 13 April 1982 passed by the Appellate Collector of Customs, New Delhi, upholding the order passed by the Assistant Collector.

(2.) The petitioner company carries on the business of manufacture and sale of Staple Fibre and Polyester Filament Yarn. For the purpose of manufacture of staple fibre and polyester filament yarn, the petitioner Imports polyester polymer chips (textile grade). The main dispute In the present petition Is under which customs tariff heading polymer chips imported by the petitioner would be assessable. According to the petitioner, on a proper interpretatlon of Chapter 39 of the Customs Tariff, Note-2, the Textile Grade Polymer Chips are neither artificial plastics nor artificial resins and, therefore, cannot be classified under Chapter 39, as is sought to be done by department. Its stand Is that these would only fall under the general heading of Chapter 38, relating to miscellaneous chemical products or In the alternative under Chapter 29 relating to organic chemicals. The other side Issue pertains to the loading of the assessable value of the Imported material for the levy of customs duty with the landing charges .

(3.) Since In our view both the Issues are no longer res Integra, we deem it unnecessary to dwell on the Issues in greater detail .