1978 (4) TMI 232 - HC - Customs

Summary

Issues:
Classification of imported projection lamps under Customs Tariff items 60(2) and 72(3) - Refund of duty difference - Writ petition seeking quashing of orders.

Analysis:
The petitioner imported projection lamps for use in a grinding machine, claiming lower duty under item 72(3) of the Customs Tariff. However, the lamps were classified under item 60(2) by the respondents, leading to duty payment and subsequent refund denial. The petitioner argued the lamps were essential for the machine, had unique characteristics, and were unfit for general lighting purposes.

The appellate and revisional authorities acknowledged the lamps' special nature but classified them as electric lighting bulbs under item 60(2). They contended that despite unique features, the lamps served the purpose of illumination and were not exclusive to the grinding machine. The Central Board of Excise and Customs' tariff advices supported this classification.

The petitioner emphasized that the lamps were specifically designed for the grinding machine and were integral to its functioning. The technical instructions from the machine manufacturer highlighted the lamps' specialized use within the machine, including cooling mechanisms and optical components, reinforcing their role as essential component parts.

The judgment referred to a precedent where component parts were accorded concessional tax treatment, drawing parallels to the present case. Item 72(3) required the article to be essential as a component part, a criterion met by the unique projection lamps. The lamps' distinct characteristics and essentiality for the machine's operation aligned with the requirements of item 72(3), leading to a favorable decision for the petitioner.

In conclusion, the court allowed the writ petition, quashing the previous orders and granting the petitioner the refund claimed. The judgment clarified that the projection lamps fell under item 72(3) as component parts of machinery, emphasizing their specialized nature and essential role in the grinding machine.