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Issues: Classification of imported goods under Customs Tariff, Benefit of Notification No. 26/79
In this judgment, the Appellate Tribunal CEGAT, New Delhi, heard a revision application regarding the classification of goods imported by M/s. Ramnord Research Laboratories Pvt. Ltd. The goods in question were one box containing 100 Rolls of 35mm Eastman Opaque Leader Film imported from the USA. The dispute arose from the classification of the goods under Heading 39.01/06 by the Assistant Collector of Customs, Bombay, and the subsequent levy of countervailing duty. The appellants contended that the goods should be classified under Tariff Entry No. 37.01/08 for Photographic and Cinematographic goods, seeking the benefit of Notification No. 26-Cus./79 for exemption from customs duty. The primary issue before the Tribunal was the correct classification of the goods under Customs Tariff Heading No. 37.01/08 or 39.01/06 and whether the benefit of Notification No. 26/79 should be extended to the appellants. The appellants argued that the Leader Film should be classified under Chapter 37 as Cinematographic goods based on its name, end use, and material composition, emphasizing that the goods were for use in cine film processing machines. They further contended that Rule 4 of interpretation directs classification under the heading most akin to the goods, which, in this case, was 37.01/08. The Respondent, however, argued that the goods were Cellulose Acetate Leader Films, which did not qualify as photographic or cine films under Chapter 37. The Respondent highlighted that the goods were opaque, black on one side and white on the other, and were made of Cellulose Plastic, falling within Chapter 39 for Artificial Resins and Plastic Materials. The Respondent also pointed out that the benefit of Notification No. 26/79 was limited to Cellulose Acetate Sheets/Strips, which did not apply to the imported films. After considering the arguments and evidence presented, the Tribunal concluded that the Leader Films imported by the appellants were not photographic or cine films falling under Chapter 37 but were articles made of plastic, thus correctly classified under Heading 39.01/06. The Tribunal rejected the appellants' claims for classification under Chapter 37 and the benefit of Notification No. 26/79, stating that the goods did not meet the criteria for the exemption provided in the notification as they were films, not sheets or strips of Cellulose Acetate. Consequently, the Tribunal upheld the classification and duty levied by the authorities below, dismissing the appeal.
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