2018 (9) TMI 691 – AUTHORITY FOR ADVANCE RULINGS, TAMIL NADU – 2018 (16) G. S. T. L. 614 (A. A. R. – GST), [2019] 61 G S.T.R. 58 (AAR) – Classification of goods – Polysulphide sealants – There are five competing headings in which the said product can be covered. They are: Heading 3214; Heading 2830; Heading 3911; Heading 4002; Heading 3506.
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Held that:- The product in question, ‘Anabond Tuffseald, Polysuphide Sealant’contains two components, viz., polysulphide polymer (resin/rubber) and hardener (acts as the curing agent). Liquid polysulfide polymers form the basic ingredient of the sealant formulation and Manganese dioxide is the curing agent. Both resin and hardener are packed separately within the same container. – The base and the curing agent are presented in a single pack and are intended to be used together and complimentary to one another. Thereby, the conditions of the section Note 3 is satisfied. When the conditions are satisfied, then, if on mixing, the resultant is a
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er consideration is not classifiable under this heading – Chapter 3911 covers polysulphides. As per explanatory notes to HSN, Polysulphides are polymers characterised by the presence of monosulphide linkages in the polymer chain…In polysulphides each sulphur atom is bound on both sides by carbon atoms, as opposed to the thioplasts of Chapter 40, which contain Sulphur-sulphur linkages. In the case at hand, Sulphur-Sulphur linkages are present and therefore they are thioplasts. Hence, the product is not classifiable under this heading – Chapter 4002 covers “synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; mixtures of any product of heading 4001 with any product of this heading, in primary forms or in plates, sheets or strip”. The product in question contains polysulphide rubber/resin which is a synthetic rubber. In the present case, classification of the product can be done based on the Section, Chapter Notes and Headings and therefore cla
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nly used for sealing expansion joints where large movement is anticipated in concrete construction and for joints between diverse construction materials like glass, aluminium, steel, cladding, glazing, tilling, tanks, internal and water retaining structures. It is also used for sealing expansion joints where there is vehicular traffic (e.g. airports and bridges) or pedestrian traffic. Applicant s product contains two components, viz., polysulphide polymer (resin/rubber) and hardener (acts as the curing agent). Liquid polysulfide polymers form the basic ingredient of the sealant formulation. Applicant uses Manganese dioxide base as the curing agent.Both resin and hardener are packed separately within the same container. After opening the container, hardener is mixed with resin and applied on the surface. After mixing resin and hardener, the polymerisation is initiated at room temperature which proceeds further until it is cured. The applicant has stated that, the relevant product for th
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e the sealant is no bar for classification under CTH 3214. The product in question is presented as a set containing polysulphide rubber and hardener. It also satisfies the three conditions mentioned in the Section Note.Thus, according to the terms of the Headings and Section Notes, the product is classifiable under Tariff item 32141000 and subject to GST at the rate of 28%. Furthermore, US Customs and Border Protection has classified identical products under Heading 3214 in CROSS Rulings N215915 and N216207. * Chapter 28 covers all inorganic chemicals, organic or inorganic compounds of precious metals of rare-earth metals, or radio-active elements or of isotopes. For a chemical compound to come under Chapter 28, it should be an inorganic compound and the compound should be a separate chemically defined compound also. In the present case, polysulphides are products of a condensation reaction between organic polyhalides (e.g. Bis-2-chloroethyl formal) and alkali polysulphides and therefo
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-Sulphur linkage is covered under CTH 4002. In terms of HSN Explanatory Notes, the Heading 3911 covers Polysulphide polymers characterised by the presence of mono sulphide linkages in the polymer chain, for example, poly (phenylene sulphide). In polysulphides each sulphur atom is bound on both sides by carbon atoms, as opposed to the thioplasts of Chapter 40, which contain sulphur-sulphur linkages. The synthesis of polysulphide rubber isnNa2S2 +nCl-R-Cl->2nNaCl+-[R-S-S]. Thus, classification under Heading 3911 can also be ruled out. * Heading 4002 covers synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; mixtures of any product of heading 4001 with any product of this heading, in primary forms or in plates, sheets or strip . The term synthetic rubber is defined in Note.4 to Chapter.40 to include thioplasts. The product in question contains polysulphide rubber which is a thioplast, a synthetic rubber covered under CTH 4002.But the product
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itable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg: . Sub-Heading 350691 specifically covers adhesives based on polymers of headings 3901 to 3913 or on rubber . However, HSN Explanatory Notes under Heading 3506 specifically rules out such mastic preparations from that heading. The product in question is in the nature of a mastic or a sealant. Therefore, classification under CTH 3506 can be ruled out. Further, as discussed above, CTH 3214 is more specific to the product. In matters of classification the trade parlance or understanding is a crucial factor. The product in question is understood in the trade as a sealant and not as an adhesive. 4. The authorised representative of the applicant was heard in the matter. The representative furnished a synopsis of the case and also a paper book containing relied upon materials during hearing. The applicant vide their letter dated 14.05.2018 submitted Brochure of the product, A
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ner is mixed with resin and applied on the surface by means of flat tools or specially made guns. After mixing resin and hardener, the polymerisation is initiated at room temperature which proceeds further until it is cured. The mixed paste cures into a semi-stiff rubbery mass and acts as a sealant between the surfaces. Sealants are also known in the trade by their generic name mastics . These mastics/sealants are commonly used for sealing expansion joints where large movement is anticipated in concrete construction and for joints between diverse construction materials like glass, aluminium, steel, cladding, glazing, tilling, tanks, internal and water retaining structures. It is also used for sealing expansion joints where there is vehicular traffic (e.g. airports and bridges) or pedestrian traffic. 6. In the GST Schedule, tariff item shall have the same meaning as specified in the First Schedule to the Customs Tariff Act, 1975. The rules for the interpretation of the First Schedule to
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coatings or layers…. Mastics based on rubber: These may be composed, for example, of a thioplast with the addition of filers(graphite, silicates, carbonates, etc.) and in certain cases of an organic solvent. They are used, sometimes after the addition of a hardenerto give flexible protective coatings and also for caulking……. From the above, it is seen that the product after mixing together of the resin and curing agent is classifiable under CTH 32141000. 7. Note 3 to Section VI reads as follows: 3. Goods put up in sets consisting of two or more separate constituents, some or all of which fall in this section and are intended to be mixed together to obtain a product of Section VI or VII, are to be classified in the leading appropriate to that product, provided that the constituents are: i. having regard to the manner in which they are put up, clearly identifiable as being intended to be used together without first being repacked; ii. presented together; and, iii. identifiable, wh
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ion VI or VII, then such sets are to be classified in the heading appropriate to that product Mastics are spelt in heading 3214(under Section VI) of the Tariff. From the above, it is evident that the product in hand is classifiable under Heading 32141000 of the Customs Tariff. 8. Further, we find that the other probable chapter heads under which the said product may be classified as stated by the applicant, do not merit the classification for the reasons stated below: a. Chapter 2830 90 20 covers Polysulphides. As per explanatory notes to HSN, the polysulphides classified here are mixtures of sulphides of same metal. The polysulphide in question is an organic compound and is a synthetic rubber. Therefore, the product under consideration is not classifiable under this heading. b. Chapter 3506 91 covers adhesives based on polymers of headings 3901 to 3913 or on rubber. As per explanatory notes to HSN, The heading excludes products having the character of mastics, fillings, etc., of headi
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stion is not polysulphide rubber/resin alone but also contains the hardener and is presented together as a set. When presented together , the product in question becomes a mastic which has a specific classification in CTH 32141000 . Rule 3(a) of the General Rules of Interpretation provides that the most specific description shall be preferred. In the present case, as discussed above, classification of the product can be done based on the Section, Chapter Notes and Headings and therefore classification under Heading 4002 is ruled out. 9. In light of the above, we rule as under RULING It is hereby clarified that the Polysulphide Sealant manufactured by the applicant and marketed under the trade name AnabondTuffseald is classifiable under CTH 3214 10 00 of the First Schedule to the Customs Tariff Act, 1975as applicable to GST as per Explanation (iii) to Notification 1/2017-Central Tax (Rate) dt 28.06.2017 and G.O. Ms No. 59, Commercial Taxes and Registration (Bl) dt. 29th June 2017. – C
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