2021 (4) TMI 123 - AT - Customs

Classification of imported goods - steel round bars - to be classified under Customs Tariff heading 72284000 of Customs Tariff Act, 1975 or under Customs Tariff Heading 72284000 - argument of the appellant is based on the process of manufacture - Benefit of N/N. 21/2002-Cus dated 01.03.2002 (Serial No. 207) - HELD THAT - From Chapter Note (ij) of Chapter 72, it is seen that only product with solid section are classifiable as semifinished products. The products which are not of solid section cannot be classified as semifinished products. The Revenue is seeking to classify the product as hollow profile. The appellant have argued that the product tubes and pipes and hollow profiles are products made out of the process of extrusion, whereas the product imported by the appellant is a forged product, which has been proof machine. The argument of the appellant is based on the process of manufacture which has no relevance as far as classification under Chapter Heading 7304 is concerned. It is seen that for the purpose of classification in these heading the process of manufacture is not relevant. The appellant has sought classification of the product as other bars and rods relying of Chapter Note (m). The product covered are those having uniform solid cross section along their whole length. In the instant case the product does not have solid cross section and therefore, Chapter Note 1(m) has no application - It clearly covers the hollow products and gives dimensional parameters necessary for the product to fall under Chapter Heading 7304. The product imported by the appellant, therefore, automatically gets classified under Chapter Heading 7304. There are no merit in the appeal filed by the appellant and the same is dismissed.

Summary

Issues involved:
Classification of imported goods under Customs Tariff Act, 1975 - Dispute over classification of goods under Chapter Heading 72284000 or 72249099 - Appeal against order of adjudicating authority and Commissioner (Appeals) - Argument for classification as semifinished product under Chapter Heading 7224 - Argument for classification as hollow profile under Chapter Heading 73049000.

Analysis:

1. The appellant imported goods and claimed classification under Customs Tariff heading 72284000 seeking benefit of Exemption Notification 21/2002-Cus dated 01.03.2002. However, the revenue disputed the classification and ordered classification under Chapter Tariff Heading 73049000. The appellant argued that the imported goods are semi-finished and should be classified under Chapter Heading 7224. The dispute revolved around whether the goods were of solid section, essential for classification as semi-finished products under Chapter 72. The appellant's argument was based on the process of manufacture, emphasizing that the goods were not extruded products like tubes or pipes. The adjudicating authority and Commissioner (Appeals) upheld the classification under Chapter Heading 73049000, leading to the appeal before the Tribunal.

2. The Tribunal analyzed the dispute and noted that only products with solid sections could be classified as semi-finished products under Chapter 72. As the imported goods did not have a solid section, the classification under Chapter Heading 7224 as semi-finished products was ruled out. The revenue suggested an alternate classification under 73049090, covering tubes, pipes, and hollow profiles. The appellant's argument that the goods were forged and proof machined, not extruded, was deemed irrelevant for classification under Chapter Heading 7304. The Tribunal highlighted Chapter Note 1(m) and (p) of Chapter 72, emphasizing the necessity of a solid cross-section for certain classifications.

3. The appellant's reliance on previous Tribunal decisions related to forged products up to proof machining was dismissed as those decisions did not apply to products lacking a solid cross-section. The Tribunal concluded that the goods imported by the appellant fell under Chapter Heading 7304 as hollow products, based on the dimensional parameters specified in Chapter Note (p) of Chapter 72. Consequently, the Tribunal found no merit in the appeal and dismissed it, upholding the classification under Chapter Heading 73049000.

This detailed analysis covers the classification dispute, arguments presented, relevant legal provisions, and the Tribunal's decision, providing a comprehensive understanding of the judgment.