2004 (6) TMI 407 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Act, eligibility for benefit of Notification No. 36/96-Cus.

Classification of Goods:
The case involved the classification of imported goods, specifically flexwell wave guide E 130 TD PDR 120, by M/s. HCL. The goods were copper tubings with a protective plastic covering, imported for use in carrying electromagnetic waves between transmitters and antennas. The lower authority initially classified the goods under Chapter Heading 83.07, denying the benefit of Notification No. 36/96, which exempts Microwave Passive Components from customs duty. The HSN explanatory note was referred to, indicating that goods covered with plastic fall under Chapter Heading 8307.90.

Appeal and Commissioner's Decision:
In appeal, the Commissioner (A) reversed the lower authority's decision, classifying the goods under Heading 85.29 and granting eligibility for the benefit of Notification No. 36/96. The Commissioner relied on expert opinions from the Department of Telecommunications and previous tribunal decisions to support this classification. The Commissioner emphasized that the end use of the goods as Microwave Passive Components was crucial.

Arguments and Analysis:
During the hearing, the JDR argued that the imported goods should be classified based on their form upon importation, falling under 8307.90 as flexible tubing made of copper with a plastic covering. The JDR referenced previous tribunal decisions to support this classification. On the other hand, the Consultant defended the Commissioner's decision, emphasizing the importance of expert opinions in complex classification issues.

Judgment and Rationale:
The tribunal observed that the eligibility for the benefit of Notification No. 36/96 depended on the classification of goods. Despite the intended use as Microwave Passive Components, the goods were classified under 8307 as flexible tubings with a protective plastic covering. Expert opinions were considered, but the tribunal focused on the specific classification rules and previous tribunal decisions. Ultimately, the appeal was allowed, setting aside the Commissioner (A)'s order.

This detailed analysis of the judgment highlights the key issues of classification under the Customs Tariff Act and the eligibility for the benefit of Notification No. 36/96-Cus, providing a comprehensive overview of the case and the tribunal's decision.