2003 (5) TMI 313 - AT - Customs

Summary

Issues: Classification of imported thread guides made of ceramics for textile machinery under Chapter sub-heading 3926.90 or 8448.20.

Analysis:
1. The appeal stemmed from a dispute regarding the classification of imported thread guides initially claimed to be made of plastic under Chapter sub-heading 3926.90 but later sought to be classified as parts of textile machinery under Chapter sub-heading 8448.20.
2. The Asstt. Collector upheld the initial classification based on the Bill of Entry information, stating that the appellants failed to prove convincingly that the items were parts of machines classifiable under Heading 8445 of CTA.
3. Upon appeal, the Commissioner accepted evidence showing the thread guides were made of ceramics, not plastics, and found them correctly classifiable under Heading 69.09 (6909.90) for ceramic products used in textile machinery, with a duty rate of 85%.
4. The Commissioner noted the exclusion of thread guides from Section XVI and the Harmonised Tariff which includes them under ceramic products in Chapter 69, supporting the classification decision.
5. The appellant's counsel contested the reclassification, arguing that the Commissioner acted without notice and referenced a judgment regarding classification changes at the appellate stage.
6. The Departmental Representative supported the reclassification, citing HSN Explanatory Notes under Chapter 69.09 to justify the correct classification of thread guides as ceramic wares for technical uses.
7. The Tribunal concluded that the Commissioner's reclassification was appropriate based on the true nature of the product as ceramics, directing the Custom House to classify thread guides correctly in the future under Chapter sub-heading 6909.90, rejecting the appellant's claim as parts of textile machinery under Chapter 84.

This detailed analysis highlights the classification dispute, evidence presented, relevant tariff notes, and the final decision of the Tribunal regarding the correct classification of imported thread guides made of ceramics for textile machinery.