2003 (4) TMI 307 - AT - Customs

Summary

Issues:
1. Whether the imported cold galvanizing compound is considered consumer goods and requires an importation license.

Detailed Analysis:
The appeal before the Appellate Tribunal CEGAT, Mumbai involved the question of whether a cold galvanizing compound imported by the respondent should be classified as consumer goods necessitating a license for importation. The Deputy Commissioner initially deemed the product as consumer goods, a decision overturned by the Commissioner (Appeals) upon the importer's appeal.

The product in question, manufactured by ZRC Products Company of the USA, was described as a cold galvanizing compound containing 95% zinc in the dried film to provide protection against rust. It was noted to have various industrial applications such as repairing damaged hot galvanizing, protecting weldments, and usage in manufacturing bridges, nuclear plants, and industrial maintenance.

A key point of contention was the packaging of the imported goods, with part of it in aerosol cans and the rest in drums or jars. The Deputy Commissioner based his decision on the goods being in "consumer packing," defining consumer goods as those directly satisfying human needs without further processing. However, the Commissioner (Appeals) argued that since the goods were intended for industrial use and not domestic consumption, they should not be classified as consumer goods.

The departmental representative relied on a judgment by the Bombay High Court to support the classification of the goods as consumer goods despite their industrial applications. However, the Tribunal questioned the interpretation of "consumer packing" and rejected the notion that industrial products cannot be packaged as consumer goods, especially considering the practicality of aerosol cans for certain applications.

In analyzing the definition of consumer goods, the Tribunal emphasized the pragmatic interpretation required, highlighting that goods must be essential for recognized human needs to qualify as consumer goods. The Tribunal also distinguished a previous judgment regarding sodium vapor lamps used for street lighting, noting that the rationale behind that decision did not apply to the current case involving the cold galvanizing compound.

Ultimately, the Tribunal dismissed the appeal, concluding that the imported cold galvanizing compound should not be classified as consumer goods requiring a license for importation based on the pragmatic interpretation of consumer goods and the specific industrial nature of the product.