2010 (5) TMI 410 - AT - Customs

Classification of goods - spectacle lens (made of plastic) - first type of goods was a circular, not optically worked, tinted, curved piece of plastic, which had no optical property - second type of goods was an article of plastic for protecting both the eyes, which consisted of the front portion Of a spectacle frame with two eye covers - article was made out of a single piece of coloured transparent plastic and did not possess any optical property. The assessee classified both the types of goods under SH 9001.40 for the purpose of payment of basic customs duty (BCD) and under SH 9001.10 in respect of Countervailing Duty (CVD) - Goods falling under SH 9001.10 were chargeable to nil rate of duty - customs authorities that the subject goods were not classifiable under SH 9001.10 - first item under SH 9001.50 and the second one under SH 9004.90 Held that - protective spectacles and goggles generally consist of plain or curved discs of ordinary glass (whether or not optically worked or tinted), of plastic, of glass, etc. and these include sunglass - sunglasses could be used by mountaineers, airmen, motorists, motorcyclists, welders, foundry workers, etc. Nowhere is it stipulated that these items would not be classified under SH 9004.10 unless these are fitted with arms or other accessories for the purpose of being mounted - appropriately get classified under SH 9004.10 as sunglass.

Summary

Issues Involved:
Classification of goods under Customs Tariff Act - Dispute related to classification of goods declared as "spectacle lens (made of plastic)" - Classification under SH 9001.40 and SH 9001.10 disputed - Original authority classified goods under Heading 90.04 - Appeal filed by assessee - Commissioner (Appeals) classified goods under SH 9001.50 and SH 9004.90 - Department seeks classification under SH 9004.10 - Reference to HSN Explanatory Notes - Arguments based on optical properties and characteristics of goods.

Analysis:

1. Classification of First Type of Goods:
The dispute revolves around the classification of two types of goods declared as "spectacle lens (made of plastic)." The first type is described as a circular, tinted, curved piece of plastic with no optical property. The appellant classified both types under SH 9001.40 for basic customs duty and SH 9001.10 for Countervailing Duty. However, customs authorities disagreed, classifying the goods under Heading 90.04, along with sunglasses. The Commissioner (Appeals) classified the first item under SH 9001.50. The Tribunal analyzed the HSN Explanatory Notes and concluded that goods under Heading 90.01 should be optically worked, which the first item was not. Therefore, the item was classified under SH 9004.10 as it did not possess optical properties.

2. Classification of Second Type of Goods:
The second type of goods, a single piece of colored transparent plastic forming the front portion of a spectacle frame with two eye covers, was also in dispute. The appellant sought classification under SH 9004.10 as sunglasses, while the Commissioner (Appeals) classified it under SH 9004.90. The Tribunal considered the essential characteristics of sunglasses, noting that protective spectacles and goggles do not require optically worked materials. Referring to the HSN Explanatory Notes, the Tribunal agreed with the appellant that the item could be classified under SH 9004.10 as sunglass, even without supporting arms. Thus, the second item was classified under SH 9004.10.

3. Conclusion:
In conclusion, the Tribunal partly allowed the Revenue's appeal, classifying the goods under SH 9004.10. The judgment emphasized the importance of optical properties and characteristics in determining the classification of goods under the Customs Tariff Act. The decision was based on a thorough analysis of the HSN Explanatory Notes and the essential features of the goods in question.