1986 (2) TMI 187 - AT - Central Excise

Summary

Issues: Classification of imported goods under the Customs Act, 1962

Detailed Analysis:

Issue 1: Classification of Goods
The appeals involved the classification of imported goods described as "diamond compax." The goods were composed of man-made diamond crystals bonded to a tungsten carbide substrate. The lower authorities classified the goods under Heading 71.12/15, while the Appellate Collector classified them under Heading 68.01/16 (1). The appellant contended that the goods should be classified under Heading 71.04 as a polycrystalline agglomerate of man-made diamond powder.

Issue 2: Interpretation of Tariff Schedule
The Tribunal examined the descriptions under Heading 71.12/15 and Heading 68.01/16 to determine the correct classification. It was argued that Heading 71.12/15 covers finished articles, but the goods in question were raw materials to be fabricated into tool tips. However, the Tribunal found that the goods fell under the description of articles incorporating synthetic diamond, which aligned with Heading 71.12/15.

Issue 3: Exclusion Clauses
The Tribunal considered Note 2 (k) to Chapter 71, which excludes abrasive goods falling within Chapter 68 or 82. It was determined that the goods did not fall under Chapter 82 due to the lack of a base metal support. The appellant's alternative classification under Heading 68.01/16 (b) was also rejected as the goods did not match the description of grinding stones or wheels.

Issue 4: Application of Chapter Notes
The Tribunal analyzed Note 1 to Chapter 82, which specifies the types of materials covered under the chapter. Since the goods did not meet the criteria of having a base metal support or being made of metal carbides, they were not classified under Chapter 82. Additionally, the goods required further fabrication to be functional, excluding them from Chapter 82.

Issue 5: Final Classification
After considering various headings, sub-headings, and chapter notes, the Tribunal concluded that the goods fell under Heading 71.12/15. The classification by the Appellate Collector was set aside, and the classification by the Assistant Collector was confirmed. As a result, the appeals were dismissed, affirming the classification under Heading 71.12/15.

This detailed analysis of the judgment highlights the key issues, interpretations of relevant tariff schedules, exclusion clauses, and the final classification decision made by the Tribunal.