2006 (7) TMI 369 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Act, 1975

Analysis:
1. The appeal was filed by the Revenue against the order passed by the Commissioner of Customs (Appeals), wherein the classification of goods under Chapter Tariff Heading No. 8424.90 was disputed.

2. The importer filed a Bill of Entry for clearance of items described as parts of M08 Spray Pumps under Chapter Tariff Heading No. 8424.90, while the Assistant Commissioner classified them under CTH 9616.10. The Commissioner of Customs (A) later held the goods to be classifiable under CTH 8424.90 as parts of Dispenser. However, the Commissioner of Customs, Mumbai, reviewed the order and authorized the Assistant Commissioner to file an appeal before the Tribunal, leading to the current appeal.

3. The Commissioner of Customs (A) observed the imported goods as components of M08 Spray Pumps, intended for various uses including alcohol-based fragrances and pharmaceutical products. The goods were found to be general pumps not exclusively meant for scent sprays or toilet sprays, falling under Sub-heading 8429.89 as "mechanical appliances for projecting, dispersing or spraying liquids or powder."

4. The department argued that the goods should be classified under Heading 9616 due to their specialized nature, despite the importer's claim of not manufacturing scents/toiletries/sprays. The Tribunal noted that the goods, although not exclusively for scent sprays, could still be used for chemicals and pharmaceuticals, warranting classification under Chapter Heading 9616.

5. The Tribunal, after considering the explanatory notes under the competing headings, concluded that Heading 9616 was more appropriate for the classification of the imported goods. The Commissioner's findings that the goods were not exclusively for scent sprays and did not have technical characteristics for such use supported the classification under Heading 9616. Therefore, the Tribunal allowed the Revenue's appeal and set aside the impugned order.

This detailed analysis of the judgment highlights the classification dispute under the Customs Tariff Act, emphasizing the considerations of intended use and technical characteristics in determining the appropriate tariff heading for the imported goods.