MADRAS RUBBER FACTORY LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THE captioned appeal was initially filed as a Revision Application before the Central Government which under Section 131 -B of the Customs Act, 1962, has come as transferred proceedings to this Tribunal for disposal as if it were an appeal filed before it.

(2.) THE short point arising for decision in the present appeal is whether the product silicone emulsion imported by the appellants, vide Bill of Entry Cash No. 903 dated 15 -4 -1977 was correctly assessable to duty under Heading No. 39.01/06 of the Customs Tariff Schedule of 1975, as determined by the lower authorities, or under Heading No. 34.01/07(2) of the said Schedule as claimed by the appellants.

(3.) THE appeal was heard on 30 -8 -1983. Shri Ignatius submitted that the same product used to be assessed under the residual Item No. 87 of the repealed Customs Tariff Schedule of 1934 as "goods not otherwise specified" on the basis of a tariff ruling issued by the Central Board of Excise and Customs. Even after the introduction of the new Customs Schedule of 1975, the Collector of Customs, Madras had issued a Public Notice No. 59/78 dated 3 -4 -1978 classifying "Mould release Agent" (containing Polymeric Organic Silicone compound in volatile organic solvent) under Heading No. 34.01/07 (1). The product was a mould releasing agent which was used in the appellants' factory to lubricate the tyre moulds in order to prevent the moulded tyre from sticking to the mould and help disengage the tyre from the mould. Synthetic resin would not be able to do this function since it would bind or stick the tyre to the mould. Shri Ignatius also drew our attention to the CCCN Explanatory Notes appearing on Pp. 567 to 570 under Chapter 39 and submitted that since silicone emulsion had no resinous property, it would not fall within Chapter 39. On the other hand the Explanatory Notes under Heading No. 34.03 of the CCCN would show that mould released preparations used in plastics, rubber or construction industries or in metal foundaries fell within that heading. The corresponding Heading in the Indian Customs Tariff Schedule would be 34.01/07 (2) as a lubricating preparation. This view got confirmed in the Public Notice No. 59/78 issued by the Collector of Customs, Madras.