1983 (11) TMI 316 - AT - Customs

Summary

Issues:
1. Re-assessment of duty on loco tyres due to discrepancy in shipment and valuation.
2. Classification of imported goods under the Customs Act, 1962.

Analysis:
1. The case involved a consignment of loco tyres imported and assessed to duty under Heading 63(28) FN ICT. The initial claim for re-assessment based on revised c.i.f. value and weight, and as loco parts under ICT 72(3)/72(a) at 40%, was rejected by the Assistant Collector and the Appellate Collector due to insufficient evidence. The appellant contended that the discrepancy was not due to short shipment but wrong shipment of two types of tyres. A revised invoice was obtained to reflect the correct consignment, and the appellant sought re-assessment based on the actual shipment details. The Tribunal accepted this argument and directed revision of assessment based on the values provided by the appellant.

2. The second issue revolved around the classification of the imported goods. The appellants argued that the loco tyres should be classified as components of locomotives under ICT 72(3) read with 72(a) instead of being treated as other articles of iron or steel. The Departmental Representative opposed this, stating that semi-finished steel articles are typically classified as such under the ICT. However, the Tribunal agreed with the appellants, considering the essential character of the goods and the Ministry of Finance's letter indicating the classification criteria. The Tribunal directed the Assistant Collector to re-assess the classification of the loco tyres as components of locomotives, providing consequential relief to the appellants.

Overall, the Tribunal allowed the appeal on both grounds, directing the re-assessment of duty based on the corrected values and classifying the loco tyres as components of locomotives for customs purposes. The judgment highlighted the importance of accurate documentation and evidence in duty re-assessment cases and emphasized the relevance of classification criteria set forth by the Ministry of Finance in determining the appropriate customs classification for imported goods.