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Issues: Classification of goods under Customs Tariff Schedule - Applicability of Heading No. 85.18/27 vs. Heading No. 90.24 or 90.29
In this judgment by the Appellate Tribunal CEGAT New Delhi, the issue at hand is the classification of imported goods, specifically "pressure transducers," under the Customs Tariff Schedule. The appellants, a company manufacturing high density polyethylene, argued that the goods should be classified under Heading No. 90.24 for instruments and apparatus for measuring pressure, while the Customs authorities classified them under sub-heading (1) of Heading No. 85.18/27 for mounted piezo-electric crystals. The Tribunal had to determine the correct classification based on the nature and use of the goods. The Tribunal analyzed the contentions of both parties regarding the classification of the pressure transducers. The appellants asserted that the goods did not utilize the piezo-electric effect, which was a key component for classification under Heading No. 85.18/27. They argued that the goods should be classified under Heading No. 90.24, emphasizing the specific nature of instruments for measuring pressure. On the other hand, the Respondent contended that even if the goods were not classified under Heading No. 85.18/27, they could fall under Chapter 90, particularly under Heading No. 90.28 for electrical instruments, or Heading No. 90.29 for parts or accessories of measuring instruments. The Tribunal scrutinized the evidence and submissions made by both parties. It noted that the goods in question did not make use of piezo-electric crystals, as claimed by the Customs authorities. The Tribunal found no evidence supporting the assumption that the pressure transducers contained piezo-electric crystals. Additionally, upon reviewing the goods' illustration and composition, the Tribunal concluded that even if the goods hypothetically contained a piezo-electric crystal, they constituted more than just a mounted crystal, thus not aligning with the classification under Heading No. 85.18/27. Ultimately, the Tribunal ruled in favor of the appellants, determining that the correct classification for the pressure transducers was under Chapter 90, specifically Heading No. 90.24 for instruments and apparatus for measuring pressure. The Tribunal directed the Customs authorities to reassess the goods at the duty rate applicable to Heading No. 90.24 and instructed the refund of any excess duty paid by the appellants within a specified timeframe. This decision highlighted the importance of accurate classification based on the functionality and components of the imported goods under the Customs Tariff Schedule.
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