Arun Industries Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that Polyvinyl Chloride [PVC] Suspension Resin Grade are correctly classifiable under Customs Tariff Heading [CTH] 3904.21. Accordingly, the order is set aside and appeal is allowed.
Facts- The Appellant had filed bills of entries for clearance of “Polyvinyl Chloride (PVC) Suspension Resin SP 660”. The Appellant self-assessed the classification of the goods under CTH 39042110/39042190 as “Other Poly (Vinyl Chloride): Non-Plasticised: Poly (Vinyl Chloride) Resins” and availed FTA benefit of ASEAN-India Free Trade Area Preferential Trade Agreement under Notification No. 046/2011-Customs dated 01.06.2011 (Sl.No.459); and thereby paid Basic Customs Duty (BCD) @ 2%, CVD @ 12%, E. Cess @ 3% and SAD @ 4% at the time of clearance of the goods.
The Department noticed that the imported grade of PVC Resin is not classifiable under the CTH 39042110/39042190 and it is rightly classifiable under the CTH Sub-heading 390410- “Poly (Vinyl Chloride) not mixed with any other substances” and more specifically under CTH- 39041090-Other category. Consequently, the impugned goods are not eligible for 2% BCD under notification No. 046/2011-Customs dated 01.06.2011 (Sl.No.459) and instead BCD @ 5% is leviable on the goods under Sl.No. 458 of the said notification. Accordingly, a show cause notice dated 26.12.2014 was issued to the appellant. On adjudication, all the proposals made in the Show Cause Notice were confirmed vide Order dated .05.2016. The first appellate authority upheld the Order-in-Original and rejected the appeal. Hence, the present appeal.
