2013 (7) TMI 891 - AT - Customs

Classification of goods - classificaion under CTH 7606 12 00 or under heading 7616 - Held that - Commissioner (Appeals) in his finding agreed that the imported goods may be called as profile. However, while relying upon the HSN to chapter 7214 by virtue of which the pieces cut from bars-rods with length not exceeding the greatest cross-sectional dimension are excluded from 7214 and are covered by 7326. In this refund we find that in case of aluminium bars, rods and profile under 7604 such exclusion is not provided - The department failed to show vide which provision of the HSN explanatory notes to chapter 7214 has been made applicable to chapter 7604 - department failed to show how the impugned goods are other articles of aluminium. Further there is no sub-heading for parts under Ch. Heading 7616 and it is also not the case that the impugned goods are part of machine falling under Chapter 84 or 85. In these circumstances the goods are not classifiable under Ch. Heading 7616 and are rightly classifiable under Ch. Heading 7604. Therefore, the impugned OIA is not sustainable in law and the same is set aside - Decided in favour of assessee.

Summary

Issues:
Classification of imported goods under the Customs Tariff Act - Whether the imported aluminum blocks should be classified under heading 7604 or 7616?

Analysis:
The appellant contended that the aluminum blocks were merely cut to size and did not undergo any process to exclude them from heading 7604 or 7606. They argued that after further processing, the blocks were used in the manufacture of anti-lock braking systems for automobiles. The appellant emphasized that the blocks retained their identity even after undergoing various processes like milling, drilling, boring, and tapping to convert them into hydraulic units, making them unsuitable for classification under heading 7616.

The department, on the other hand, classified the goods under heading 7616, stating that the imported aluminum blocks were tailor-made pieces cut to specific sizes and could not be of universal use. They referenced notes to chapter 7214, which exclude pieces cut from bars and rods with specific dimensions from 7214 and classify them under 7326.

Upon careful consideration, the Tribunal found that the imported goods, although termed as profiles, did not fall under the exclusion clause provided in chapter 7214. The Tribunal noted that there was no provision in the HSN explanatory notes to apply chapter 7214 to chapter 7604. As there was no sub-heading for parts under chapter heading 7616, and the goods were not part of a machine falling under specific chapters, the Tribunal concluded that the goods were rightly classifiable under chapter heading 7604. Therefore, the Tribunal set aside the impugned order-in-appeal, ruling in favor of the appellant.

This detailed analysis of the judgment showcases the arguments presented by both parties, the legal interpretations applied by the Tribunal, and the final decision reached based on the classification criteria under the Customs Tariff Act.