2004 (4) TMI 502 - AT - Customs

Summary

Issues: Classification of imported goods under Chapter 70 for notification benefit.

In this case, the appellants imported rectangular blocks declared as "Raw Optical Glass" seeking the benefit of Notification No. 242/89. However, the lower authorities classified the goods under Chapter 70, making them ineligible for the notification benefit. The Assistant Commissioner and the Commissioner of Customs (Appeals) confirmed this classification under Chapter 70, denying the benefit of the notification due to the goods falling under Chapter 70 and not meeting the criteria of the notification.

The Tribunal considered the Supreme Court's decision in the case of "Real Optical Co." and emphasized the importance of how the product is understood and actually used in determining both classification and eligibility for the notification benefit. The Tribunal highlighted that the end use of the goods should be re-determined for proper classification and application of the notification benefit, as per the principles laid down in the Supreme Court's decision.

Furthermore, the Tribunal noted the reliance on the head notes under Chapter Head 70.01 of HSN, specifically focusing on the description of glass in rectangular blocks with no particular use. However, the Tribunal emphasized the need for a re-determination of end use based on the catalogues produced and certificates on record, indicating a specific end use for the imported goods. This led the Tribunal to set aside the previous orders and remit the matter for fresh adjudication to the original authority, instructing them to consider the material and proof of actual end use presented by the appellants for a re-determination of the classification and eligibility for the notification benefit.

Ultimately, the Tribunal allowed the appeal and remanded the case for re-evaluation based on the principles discussed, emphasizing the importance of considering the actual end use of the imported goods in determining their classification and eligibility for notification benefits.