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Issues involved: Classification of imported goods under Chapter sub-heading 39206991, eligibility for concessional rate of basic customs duty under Notification No. 11/05, correct assessment of goods by the assessing officers.
Classification of Goods: The imported goods, declared as PE Battery Separators under Chapter sub-heading 39206991, were cleared under ex-bond Bills of Entry but were assessed at a higher duty rate without allowing the benefit of the lower effective rate of basic customs duty @ 5% applicable to battery separators under Notification No. 11/05. The Commissioner (Appeals) rejected the importer's request for re-assessment, stating that the goods were plastic films and had not acquired the essential character of 'battery separators' as specified in the Notification. Appellant's Arguments: The appellants, leading manufacturers of automotive batteries, claimed that the imported goods were ready for use as battery separators and were correctly classifiable under Chapter Heading 8507. They argued that the goods met the technical specifications for battery separators as per the HSN notes, and the assessing authority should have assessed them at the concessional rate even if not claimed initially. Tribunal's Decision: The Tribunal found that the goods, imported in roll form, were indeed battery separators eligible for the concessional rate of duty claimed by the appellants. Citing the obligation on the Department to extend relief under unconditional exemption Notifications, the Tribunal held that the correct description declared by the importer in the Bills of Entry should guide the assessment process. The HSN notes did not exclude battery separators in roll form from Chapter Heading 8507, and previous assessments of similar goods supported the appellants' claim. The Tribunal distinguished a previous case involving filter material rolls, emphasizing that in this case, the goods met the criteria for battery separators under Chapter Heading 8507. Conclusion: The Tribunal allowed the appeals, stating that the impugned goods were indeed battery separators eligible for the concessional rate of duty claimed by the importer. The decision was pronounced in open court on 16-2-07.
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