2004 (5) TMI 426 - AT - Customs

Summary

Issues: Classification of goods under import as parts or complete articles, interpretation of Exim Code, Import Policy compliance

Classification of Goods:
The judgment involves an appeal against the order of the Commissioner of Customs (Appeals), Mumbai, regarding the classification of trolley carts under import. The Commissioner held that the trolley carts are parts and components falling under Exim Code 39269009.40 and are freely importable. However, the Revenue contends that the goods are complete articles in themselves and should be classified under Exim Code 39269009.90, making them restricted under the Import Policy.

Interpretation of Exim Code:
The Commissioner (Appeals) based their decision on the definition of 'part' under Para 7(29) of the Exim Code, stating that a part may be a component or an accessory. They concluded that the trolley carts are parts and components falling under Exim Code 39269009.40. However, the appellate tribunal observed that trolley carts made of plastic cannot be considered as accessories or parts of school bags. They clarified that school bags and trolley carts are separate and distinct articles, with trolley carts not being essential for the functionality of school bags.

Import Policy Compliance:
The appellate tribunal disagreed with the Commissioner (Appeals) and held that the trolley carts are correctly classifiable under Exim Code 39269009.90, making them restricted and requiring a valid import license for importation. They emphasized that the presence of a trolley cart does not render a school bag incomplete, and therefore, the trolley carts cannot be considered as accessories or parts of school bags. Consequently, the tribunal allowed the appeal of the Revenue and set aside the order of the Commissioner (Appeals).

This judgment primarily revolves around the proper classification of trolley carts under import and their compliance with the Import Policy. The dispute arises from differing interpretations of the Exim Code and whether the trolley carts should be considered as parts or complete articles. The appellate tribunal's analysis focused on the distinct nature of trolley carts and school bags, emphasizing that trolley carts do not qualify as accessories or parts of school bags. Ultimately, the tribunal concluded that the trolley carts fall under a different classification, requiring compliance with the Import Policy and a valid import license for importation.