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5.7 The Ld. Advocate further submitted that CTH 3904 21 10 is the specific heading applicable to non-

plasticised PVC resins, and CTH 3904 10 90 is a residuary heading. She referred to Rule 3(a) of the General Rules for the Interpretation of Import Tariff to submit that "the heading which provides the most specific description shall be preferred to headings providing a more general description"

and therefore, classification under the residual heading CTH 3904 10 90 is legally impermissible when a specific heading CTH 3904 21 10 squarely covers the goods in question.
"4. We have heard the contesting parties and have carefully gone through the appeals and submissions made. The dispute pertains to the classification of 'PVC Resin SP 660 Suspension Grade', under CTH 3904 2110 - Poly (vinyl Chloride) resins, [appellant] or CTH 3904 1090 - Poly (vinyl Chloride), not mixed with any other substances: Other [revenue].
5. Under the Customs Tariff Act, 1975, imported goods are classified based on tariff headings/ sub-headings, section and chapter notes, and the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975 (GRI). Rule 1 of the GRI provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes. If the goods cannot be classified solely on the basis of GRI 1, Rules 2 to 6 provide further classification guidance in sequential order. Rule 3(a) of GRI also provides that the heading which provides the more specific description shall be preferred to headings providing a more general description. Hence if the goods to be classified are covered by the description in a heading and the Section and Chapter Notes do not exclude classification in that heading, the heading applies.

Notwithstanding the above, on a comparison with eight digit and triple dash level between CTH 39041090 and CPH 39042110 shows that CTH 39042110 is the most appropriate for the impugned goods namely PVC resins without plasticizers. When an entry at eight digit level covers the goods specifically then it should be taken as the most appropriate heading. Further the CTH chosen by the department i.e. CTH 39041090 is a residual entry. Whereas the CTH 39042110 is specific. Rule 3 (a) of the General Rules for the Interpretation of Import Tariff has laid down that "the heading which provides the most specific description shall be preferred to headings providing a more general description". Therefore, CTH 39041090 being a residual entry at eight digit level gets ruled out. Further, there are two separate headings succeeding CTH 3904 00 to cover separately Non plasticized PVC Resins (CTH 390421) and plasticized PVC Resin (CTH 3904 22). The very fact that there are separate sub headings to specifically cover plasticized PVC resin (3904 22) and non- plasticized PVC resin (390421) implies that CTH 390400 would not cover non plasticized PVC resin. Further, the appellants have stated that all along they have been classifying the said goods under CTH 39042110 and paying Anti Dumping Duty. The assessing authority is now seeking to reclassify the goods under CTH 39041090. If this CTH is correct then the all the ADD paid by the appellants to the tune of Rs. 65.28 crores during the period from November 2013 to January 2014 will be rendered refundable to them. The Assessing Officer in his misplaced enthusiasm for maximizing revenue may in fact end up harming the interests of revenue. This is the precise reason as to why Board In its wisdom had issued Circular No. 41/98 dated 11.6.1998 wherein it has been clarified that a settled position of classification should not be disturbed without the approval of the Commissioner. In line with the above discussions, the impugned goods have to be compulsorily classified under CTH 39042110 only.

5.3. From the Heading 39.04, it is evident that during the period in dispute, Tariff Item 3904 21 10 was specific entry for 'Poly (vinyl chloride) resin'. It is settled law that specific entry will prevail over general one. Rule 3(a) of General Rules for the Interpretation of Import Tariff Schedule also provides that the heading which provides the most specific description shall be preferred to headings providing a more general description. In the present case, Tariff Item 3904 2110 is specific for Poly (vinyl chloride) resins', whereas Tariff Item 3904 10 90 covers 'Others' which is a residuary entry and the same cannot be preferred over a specific entry. The imported goods are 'PVC resin suspension grade' which is non-plasticised. Therefore, going by the General Rules for Interpretation, we find that subheading 3904 21 is a specific heading, which is to be preferred over the general Heading 3904 00. Thus, we observe that the imported goods are correctly classifiable under sub-heading 3904.21 (Tariff Item 3902 21 10) by application Rule 3(a) of General Rules for the Interpretation of Import Tariff Schedule."