Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench at Ahmedabad REGIONAL BENCH-COURT NO. 3 Customs Appeal No. 10103 of 2024 – DB (Arising out of Order in Original AHM-CUSTM-000-PR.COM-19 TO 21-2023-24 dated

30.11.2023 passed by the Pr. Commissioner, Customs- Ahmedabad)

KLJ POLYMERS & CHEMICALS LIMITED ……..Appellant Plot No.8A, KLJ House, Najafgarh Road, New Delhi-110015 VERSUS Commissioner of CUSTOMS - Customs Ahmedabad ……Respondent Customs House, Near All India Radio, Navrangpura, Ahmedabad-380009, Gujarat APPEARANCE:

Shri Pramod Kumar Rai, Advocate appeared for the appellant Shri Girish Nair, Assistant Commissioner (AR) appeared for the department CORAM:

HON'BLE MEMBER (JUDICIAL), MR. SOMESH ARORA HON'BLE MEMBER (TECHNICAL), MR. SATENDRA VIKRAM SINGH Final Order No. 10453/2025 DATE OF HEARING: 24.04.2025 DATE OF DECISION: 05.06.2025 SOMESH ARORA

1.1 M/s. KLJ Polymers & Chemicals Ltd (the appellant importer) was engaged in import of different types of chemicals, PVCs, pigments etc and also engaged in manufacturing and trading of polymers, pigments, lubricants, stabilizers etc.

1.2 During the course of verification of records by the audit and on perusal of EDW data, it was noticed that the importer had mis-classified “Styrene Butadiene Copolymer” under CTH 39039010/39039090 instead of CTH 40021990 and wrongly availed the benefit of Sr. No. 262/266 of Not. No. 50/2017-Cus dated 30.06.2017. It was also noticed that they imported Styrene Butadiene Copolymer under CTH 39039090 instead of CTH 40021990 in Bill of Entry No 2124869 dated 16.06.2017 and availed the benefit of Sr. No. 239 of Not No. 12/2012-Cus dated 17.03.2012. During the course of verification of records and on perusal of EDW data, it was noticed that the importer had mis-classified Styrene Butadiene Copolymer under CTH 39039090 instead of CTH 40021990 and wrongly availed benefit of Sr. No 296 instead of Sr No. 322 of Not. No. 69/2011-Cus dated 29.07.2011 on goods imported from Japan on the basis of country of origin certificate.

1.3 The following three Show Cause Notices dated 08.06.2022, 21.02.2023 and 18.04.2023 were issued to the importer proposing the following:

(a) Classification of “Styrene Butadiene Copolymer (SBC)” imported by them be not reassessed under CTH 40021990 instead of CTH 39039010/ 39039090. (b) Exemption of benefit of Sr. No.262/66 of Not. No. 50/2017-Cus dated 30.06.2017 & Sr. No. 296 of Not. No. 69/2011-Cus dated 29.07.2011 be not denied.

(c) Diff. duty alongwith interest be not demanded under Section 28(4) & 28AA respectively of the Customs Act, 1962.

(d) Goods imported by them by misclassifying the same be not confiscated under section 111(m) & 111 (o) of the Customs Act, 1962.

(e) Penalty under section 112 (a)/ 114 A & 114 AA of the Customs Act, 1962 be not imposed.

1.4 The Adjudicating Authority decided the matter vide order dt.30.11.2023 wherein he found that the importer was claiming classification under CTH 39039010/39039090. Chapter 3903 was for 'Polymers of Styrene, in Primary Forms' and CTH 39039010 was specifically for 'Copolymers, solely of styrene with allyl alcohol, of any acetyl value of 175 or more whereas importer himself had admitted that imported goods contained "Butadiene". As the impugned imported goods do not contain allyl alcohol of any acetyl value of 175, these would not fall under CTH 39039010 The wording 'copolymers' is intended to specify a particular subset of copolymers that are composed exclusively of 'styrene and allyl alcohol and have a specific acetyl value of 175 or more. Thus, styrene mixed / blended with Butadiene is not covered under CTH

39039010.

1.5 With regard to mis-classification of the subject imported goods under CTH39039090, the Adjudicating Authority found that CTH 39039090 is for “Other” which is residuary entry and all other goods covered under 3903 would merit classification under CTH 39039090. The Customs Heading '3903' is for "Polymers of Styrene, in primary forms" and so, only goods containi