2017 (1) TMI 347 - AT - Customs

Classification of imported goods - Graphistone-Love - classified under CTH 49119990 or CTH 701890? - chapter 49, which deals with the printing material and Chapter 70, which covers articles made of glass - Held that - The nature of the product is such that it finds use primarily in ornaments and is made essentially of glass. It is evident that printing is only incidental to the use of the product in jewellery. Consequently, we rule out classification of the product under Chapter 49. Rule 3(b), which covers classification of mixtures, and composite goods consisting of different materials or made up of different components. This requires classification to be made as though the composite goods consists only of material which gives them their essential character - In the present item, the goods are made of a metal piece printed with a motif on a crystal which can be seen with the help of a lens. The essential character of this composite article is that of glass. Consequently, the classification under chapter 70 would be most appropriate. The classification under Chapter 701890 as done by authorities below is approved and that under Chapter 49 is rejected. Appeal dismissed - decided against appellant.

Summary

Issues: Classification of imported goods under Customs Tariff Heading (CTH) 49119990 or CTH 701890.

In this case, the appellant imported Graphistone-Love, a tiny glass crystal with images or text engraved, and declared it under CTH 49119990. Customs contended that the goods were not classifiable under Chapter 49 as they were not printed material. The Deputy Commissioner classified the goods under CTH 701890, which was upheld by the Commissioner (Appeals). The appellant argued that the product should be classified under Chapter 49 as it includes printed items not covered elsewhere. The Tribunal analyzed the nature of the imported goods, which were tiny crystals with engraved text supported by borosilicate glass and a magnifying lens. The Tribunal considered the use and essential character of the product to determine the appropriate classification.

The appellant relied on the Supreme Court decision in Metagraphs Pvt. Ltd. vs. Collector of Central Excise, which stated that if printing is primary and not merely incidental, the product is classified under the printing industry. The Tribunal examined the samples of the imported product and found that the text was printed using nano-technology and magnified by a lens. It was observed that the product's primary use was in jewelry, and it was predominantly made of glass. Therefore, the Tribunal ruled out classification under Chapter 49 for products primarily used in ornaments and made of glass, where printing was incidental to the product's use.

The Tribunal considered the classification rules under the Customs Tariff, specifically Rule 3(a) and Rule 3(b), for goods consisting of multiple materials or mixtures. Since the essential character of the imported article was glass, the most appropriate classification was under Chapter 70 covering glassware. The Tribunal approved the classification under CTH 701890 as done by the lower authorities and rejected the classification under Chapter 49. Ultimately, the Tribunal upheld the impugned order and dismissed the appeal on 26.12.2016.