1983 (3) TMI 293 - AT - Customs

Summary

Issues:
Liability of imported item for countervailing duty under Tariff Entry 51 of the Central Excise Tariff.

Analysis:
The case involved a dispute regarding the liability of imported "pulp stones" for countervailing duty under Tariff Entry 51 of the Central Excise Tariff. The imported goods were classified under heading 68.01/16(2) of the Customs Tariff for basic Customs Duty but were held to be falling under Item 51 of the Central Excise Tariff for countervailing duty. The party contended that the goods were not liable for countervailing duty and that Tariff heading 51 had been wrongly applied.

The Assistant Collector of Customs, Bombay, rejected the party's refund application, holding that the imported goods were "Norton" grinder pulp stones, categorized as tools and correctly classified under Tariff Entry 51. The Appellate Collector upheld the assessment under Tariff Entry 51, despite disagreeing with the Assistant Collector's reasoning.

The matter was brought before the Tribunal through a revision petition, where the appellant argued that the goods were merely grinding stones and not covered by Tariff Entry 51. The Department contended that Tariff Entry 51 encompassed items like grinding stones based on the Customs Cooperation Council Nomenclature.

Upon careful consideration, the Tribunal found that the imported goods were wrongly assessed for countervailing duty under Tariff Entry 51. The Explanation in Tariff Entry 51 defined "grinding wheels and the like" with specific functions and materials, which the imported goods did not meet. The Tribunal concluded that the goods should have been assessed under Tariff Heading 68 for countervailing duty, as they were manufactured items. The appeal was partly allowed, directing relief based on the assessment under Tariff Heading 68 of the Central Excise Tariff.

In summary, the Tribunal ruled in favor of the appellant, holding that the imported goods, described as grinding pulp stones, were wrongly assessed for countervailing duty under Tariff Entry 51. The Tribunal found that the goods did not meet the criteria specified in the Explanation of Tariff Entry 51 and should have been assessed under Tariff Heading 68 for countervailing duty.