1983 (4) TMI 281 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Schedule

Issue 1: Representation and Proceeding
The appellant, M/s. Saurashtra Chemicals, filed a revision petition before the Central Government, which was treated as an appeal by the Tribunal under Section 131B of the Customs Act. Despite notice for hearing being sent and no representation from the appellant, the Tribunal decided to proceed with the appeal as per Rule 20 of the Customs, Excise & Gold (Control) Appellate Tribunal (Procedure) Rules, 1982. The Revenue was represented by Shri K.V. Kunhikrishnan.

Issue 2: Dispute over Classification
The dispute revolved around the appropriate classification of imported goods described as carbon rings in the Bill of Entry. The appellant argued that these carbon rings, described as spares for turbosets, should be classified under B.T.N. heading 84.65 as parts of machinery, while the authorities classified them under heading 68.16 as mineral articles. The appellant's plea was based on the description in the invoice and the commonality with labyrinth rings assessed under heading 84.65.

Issue 3: Interpretation of Classification
The majority order, by Member (Judicial) S. Duggal, emphasized that the specific description of "parts of machinery not elsewhere specified" under heading 84.65 was more appropriate for the carbon rings than the general description under heading 68.01/16. The Tribunal found that the carbon rings were used as parts of machinery, and the Explanatory Notes to the CCCN were only guidelines, not conclusive determinants. The Tribunal concluded that the carbon rings should be classified under heading 84.65.

Issue 4: Dissenting Opinion
In the dissenting order by Member G. Sankaran, it was argued that the carbon rings, even if considered parts of machinery, fell under heading 68.01/16 as articles of other mineral substances. The dissenting opinion referred to statutory notes in Chapter 84 and Chapter 68 to support the classification of the carbon rings under heading 68.01/16(1) as mineral articles, not elsewhere specified.

Issue 5: Decision and Refund
The majority decision allowed the appeal, directing that the refund claim of the appellant be granted within two months, assessing the goods to customs duty under heading 84.65. The dissenting opinion upheld the classification of the carbon rings under heading 68.01/16(1) and concluded that the appeal failed. The Editor's comments supported the majority decision, emphasizing the specificity of heading 84.65 for the carbon rings as parts of machinery.

This detailed analysis of the judgment provides insights into the classification dispute and the reasoning behind the Tribunal's decision, including the majority and dissenting opinions.