1985 (6) TMI 187 - AT - Customs

Summary

Issues: Classification of imported shredded wire under Customs Tariff Act - Heading 73.15(i) read with Heading 73.14 vs. Heading 73.33/40.

In the judgment by the Appellate Tribunal CEGAT New Delhi, the issue at hand was the classification of High Carbon Steel Brass plated Shredded wire imported by the appellants under the Customs Tariff Act. The Assistant Collector of Customs had initially rejected the claim for re-assessment and refund, stating that the shredded wire was considered manufactured articles out of wire and not wire itself, thus falling under Heading 73.33/40 as assessed by the Revenue. The Appellate Collector of Customs also upheld this decision, determining that the shredded wire did not qualify as usual wires under Item 73.14 or 73.15 of the Customs Tariff Act. The appellants then filed a Revision Application to the Government of India, leading to the present appeal before the Tribunal.

During the appeal, the appellants presented various documents, including purchasing specifications, a certificate explaining the nature of the goods, and references to relevant definitions in the Indian Standard Glossary of Terms and the Explanatory Notes of the Customs Cooperation Council Nomenclature. They argued that the shredded wire should be classified under Heading 73.15(i) read with Heading 73.14, as it still retained its identity as wire despite being shredded. They contended that the goods were alloys consisting of high carbon steel wires and brass, not falling under Heading 73.33/40 for other articles of iron or steel. The appellants also highlighted a previous order by the Collector of Customs (Appeals) in Bombay, where a similar consignment was classified under Heading 73.14.

On the other hand, the respondents defended the lower authorities' classification, emphasizing the definition of wire as a thin, flexible, continuous length of metal, which the shredded wire did not meet. They argued that the goods in question, being small pieces, could not be considered wire and thus supported the initial classification under Heading 73.33/40.

The Tribunal analyzed the definitions of wire provided in various sources, including the Customs Tariff Act, Indian Standard Institute, and dictionaries, noting that none of these definitions imposed a restriction on the length of wire. They emphasized that the trade understanding and the specifications of the goods described them as wire, even in shredded form. The Tribunal also considered the previous decision by the Collector of Customs (Appeals) in Bombay, which had accepted a similar consignment under Heading 73.14, supporting the appellants' claim for classification under Heading 73.15 read with Heading 73.14 of the Customs Tariff Act.

Ultimately, the Tribunal accepted the appellants' claim and modified the orders of the lower authorities, granting consequential relief to the appellants. The appeal was allowed, and the shredded wire was classified under Heading 73.15 read with Heading 73.14 of the Customs Tariff Act.