2003 (2) TMI 267 - AT - Customs

Photocopiers, complete or parts of photocopier - Import of - Expert opinion - Expert opinion - Remand - Tribunal s directions

Summary

Issues:
Classification of imported goods as photo copying machines or reconditioned components.

Analysis:
The appeal involved the classification of goods imported by M/s. Data Enterprises as either photo copying machines or reconditioned components. The appellant argued that they traded reconditioned components of photo copiers, importing a consignment containing chasis and other components. Initially, the Joint Commissioner classified 68 chasis as photocopiers, leading to confiscation. The matter was remanded for expert opinion, which resulted in conflicting reports. The Department ultimately confiscated the goods as photo copying machines, upheld by the Commissioner (Appeals) with reduced penalties.

The appellant contested the expert opinion, highlighting discrepancies in the reports regarding missing parts and the condition of the imported main frames. They cited previous cases where goods with similar characteristics were classified as components rather than complete machines. The appellant emphasized the importance of populated circuit boards and other components for the functioning of a photo copier, arguing that the imported goods did not meet the criteria of a complete machine.

The Department argued that the impugned goods were main frames, not components, and fell under the classification of complete articles as per the Interpretative Rules to Customs Tariff. They relied on the Exim Policy definitions of components and parts to support their stance. The Department referenced a previous case to assert that specific import licenses were required for importing sub-assemblies of photo copier machines.

Upon reviewing both arguments, the Tribunal noted that the matter had been previously remanded for expert opinion to determine whether the goods were complete machines or components. The expert reports presented conflicting views on the nature of the imported goods, with one opinion suggesting the goods possessed the necessary characteristics of a photo copier, while another committee highlighted the deficiencies in the main frames. The Tribunal considered the appellant's arguments, including past cases where similar goods were classified as components, and concluded that the impugned goods did not exhibit the essential characteristics of photo copying machines. Relying on expert opinions and previous decisions, the Tribunal set aside the impugned order and allowed the appeal.