1985 (12) TMI 157 - AT - Central Excise

Summary

Issues: Classification of imported glass flasks as industrial or laboratory glassware for customs duty purposes.

In the case before the Appellate Tribunal CEGAT, New Delhi, the respondent imported spherical glass flasks of hundred liters capacity and claimed classification under Heading 70.17/18 of the Customs Tariff Act for basic duty and under Item No. 23A(2) of the Central Excises and Salt Act for additional duty. The Assistant Collector of Customs classified the goods as industrial glassware under Heading No. 70.21 read with Item No. 23A(4) and assessed duty accordingly. The respondent sought a refund, arguing the goods were laboratory glassware for their research and development laboratory. The Appellate Collector allowed the claim, emphasizing the end use of the goods in the laboratory. However, the Central Government tentatively viewed the goods as industrial glassware based on manufacturer descriptions and the Customs Cooperation Council Nomenclature. Consequently, a notice was issued to the respondent to show cause why the Appellate Collector's decision should not be set aside. The matter was transferred to the Tribunal for disposal as an appeal.

The Departmental Representative argued that the glass flasks were industrial glassware due to their size and use in the respondent's pilot plant. He relied on the C.C.C.N. explanatory notes excluding industrial glassware from Heading No. 70.17. In response, the Zonal Manager for the respondent contended that the flasks were for the R & D laboratory to develop parameters for a pilot plant, not for production purposes. He highlighted that the goods were cleared under O.G.L. for R & D use. The Tribunal noted that Heading No. 70.21 covered glass articles not classifiable elsewhere, while Heading No. 70.17/18 pertained to laboratory glassware. Considering the goods' intended use in the respondent's laboratory and their clearance under O.G.L., the Tribunal found no reason to exclude them from classification as laboratory glassware, even if larger than typical laboratory flasks. The Tribunal also noted discrepancies in the evidence provided by the Revenue and agreed with the Appellate Collector's classification of the goods as laboratory glassware under Heading No. 70.17/18 and Item No. 23A(2) of the Central Excise Tariff Schedule.

Ultimately, the Tribunal upheld the Appellate Collector's decision, dismissing the appeal and affirming the classification of the imported glass flasks as laboratory glassware for customs duty purposes.