1983 (9) TMI 304 - AT - Customs

Summary

Issues: Classification of magneto coils under Customs Tariff - Item 84.06 or Item 85.08

Detailed Analysis:

Issue 1: Classification of Magneto Coils
The appellants imported magneto coils, component parts of agro-industrial engines they manufacture. The engines are stationary piston type industrial engines, not vehicular engines. Customs authorities previously classified these engines under Item 72 of the ICT, with starting gear, including magneto coils, under Item 72(3) as components of industrial engines. The question arises under the new Customs Tariff whether the magneto coils should be classified under Item 84.06 or Item 85.08. The appellants argue that the magneto coils should not be classified under Item 85.08, which covers electrical starting and ignition equipment for internal combustion engines, as they are not specifically excluded from the scope of Item 84.06. They stress that the changeover to the new Tariff should not create additional tax burdens and refer to exemption Notifications maintaining parity between the old and new Tariff classifications.

Issue 2: Interpretation of Customs Tariff Rules
The Departmental Representative argues that with the introduction of the Customs Tariff Act, the previous classification under Item 72(3) of the ICT is defunct. Magneto coils fall under Heading 85.08 of the CTA, covering electrical starting and ignition equipment for internal combustion engines. According to the Rules for interpretation of the Tariff, when goods are classifiable under multiple headings, the most specific description should prevail. Rule 2(a) of Notes under Section XVI mandates goods of a kind described in Chapter 84 and 85 to be classified in their respective headings. Following these rules, the Departmental Representative contends that the correct classification for magneto coils is under Heading 85.08 of the CTA.

Judgment
The Bench agrees with the Departmental Representative's arguments, concluding that the magneto coils should be classified under Item 85.08, providing a more specific description than the alternative under Chapter 84. Unless a special exemption applies, the goods are assessable at the appropriate rate under the Tariff sub-heading. Consequently, the appeal is rejected, and Appeal Nos. 535/80-B, 536/80-B, 541/80-B, and 579/80-B are disposed of accordingly.