1983 (1) TMI 268 - AT - Customs

Summary

Issues:
Classification of "Armature Frame and Field Assembly with Gear and Gear Key" under the Customs Tariff Schedule.

Analysis:
The case involved a dispute over the correct classification of imported goods, specifically "Armature Frame and Field Assembly with Gear and Gear Key" for wiper motors. The Appellants declared the classification under Heading 85.09, while the Customs authorities assessed the goods under Heading 85.09, leading to a refund claim by the Appellants. The Assistant Collector and the Appellate Collector both upheld the original assessment under Heading 85.09. The central issue was whether the goods should be classified under Heading 85.09 for wipers or under Heading 85.01(2) as parts of electric motors.

The Appellants argued that the imported goods were component parts of fractional horse power electric motors, which should be classified under Heading 85.01(2). They provided evidence of the end-use of these motors in various applications. The Appellants relied on the BTN Explanatory Notes and Section Note 4 to Section XVI to support their classification argument under Heading 85.01(2).

On the other hand, the Respondent contended that the goods imported were parts of windscreen wipers and should be classified under Heading 85.28 based on Section Note 2 to Section XVI. The Respondent argued that the goods were not specifically designed for use with a particular machine, just as parts of machines in general.

After considering the submissions from both parties, the Tribunal held that the imported goods, being component parts of electric motors, should be classified under Heading 85.01(2) of the Customs Tariff Schedule. The Tribunal rejected the application of Section Note 2(c) to Section XVI for classification under Heading 85.28 as argued by the Respondent. The decision set aside the lower authorities' orders and allowed the appeal, directing the Assistant Collector to refund the differential duty to the Appellants within 60 days.

In conclusion, the judgment clarified the classification of the imported goods under the Customs Tariff Schedule, emphasizing the distinction between parts of electric motors and specific machines like windscreen wipers. The decision was based on the interpretation of relevant tariff headings and explanatory notes, ultimately leading to a favorable outcome for the Appellants.