1984 (1) TMI 325 - AT - Customs

Summary

Issues Involved:

1. Correct classification of "Photo-Sensitive Nylon Printing Plates" under the Import Customs Tariff Schedule of 1975.
2. Applicability of additional (countervailing) duty of Customs with reference to Item No. 15A(2) of the Central Excise Tariff Schedule.
3. Determination of the appropriate classification for additional duty purposes under the Central Excise Tariff Schedule.

Detailed Analysis:

1. Correct Classification under the Import Customs Tariff Schedule:

The primary dispute revolves around the classification of "Photo-Sensitive Nylon Printing Plates" imported by the appellants. Initially, the Customs House assessed the goods under Heading No. 39.01/07, which was later contested by the appellants who argued for classification under Heading No. 84.34. The Assistant Collector upheld the initial classification, but the Appellate Collector accepted the appellants' contention that the goods should be classified under Heading No. 84.34. However, the Appellate Tribunal observed that there is no Heading 39.01/07 in the Customs Tariff Schedule and suggested that the correct classification might be under Heading 37.01/08, though they did not express a final verdict on this matter.

2. Applicability of Additional Duty of Customs:

The appellants contended that no additional duty was leviable as similar goods were not manufactured in India. The Assistant Collector rejected this claim, classifying the goods under Item No. 15A(2)-CET, which was upheld by the Appellate Collector. The Tribunal noted that the classification under the Customs Tariff Schedule could aid in determining the classification under the Central Excise Tariff Schedule. The Tribunal found that the goods were photo-sensitive printing plates, which, according to CCCN Explanatory Notes, should fall under Heading 37.01 rather than 84.34.

3. Appropriate Classification for Additional Duty Purposes:

The Tribunal focused on whether the goods could be classified as "articles of plastics" under Item No. 15A(2)-CET. The definition of "Plastics" in sub-item (2) was scrutinized, and it was determined that the printing plates, being composite articles with layers of polyester and photo-sensitive nylon resin, did not clearly fall under Item 15A(2)-CET. The Tribunal concluded that the proper classification for additional duty purposes should be under Item No. 68-CET, which covers "All other goods, not elsewhere specified."

Conclusion:

The Tribunal allowed the appeal, holding that the additional duty of Customs was leviable with reference to Item 68 and not Item 15A(2) of the CET. The consequential relief was directed to be granted to the appellants by the concerned Customs authorities within three months from the date of communication of the order.