1986 (4) TMI 220 - AT - Customs

Summary

Issues: Classification of imported chains under the Customs Tariff

Issue 1: Classification of imported chains
The appellants imported chains and declared them as an integral part of a machine tool under Heading No. 75.29(1) of the Customs Tariff. The Custom House assessed the goods under this heading, while the appellants claimed re-assessment under Heading 84.45/48. The Appellate Collector confirmed the assessment under Heading 75.29(1) based on the specificity of chains mentioned in this Tariff Heading, which could not be categorized under Heading 84.45/48. The appellants argued that the chains were specifically designed for use in a particular machine without which the machine could not function, making them eligible for classification under Chapter 84 of the Customs Tariff.

Issue 2: Interpretation of Customs Tariff provisions
The appellants contended that the imported chains were specialized parts required for a specific machine falling under Heading 84.45/48 of the Customs Tariff. However, the respondent argued that according to the Tariff provisions, parts of general use, including chains, were excluded from Chapter 84. The respondent relied on Section Note 1(g) of Section XVI, which excludes parts of general use as defined in Note 2 to Section XV from Chapters 84 and 85 of the Tariff. The respondent emphasized that chains were considered parts of general use and, therefore, should be classified under Heading 73.29, not under Chapter 84.

Analysis:
The Tribunal examined the case records and the arguments presented by both parties. It noted that Tariff Heading 73.29 specifically dealt with the classification of chains and their parts as goods of general use. Referring to Note 2 to Section XV of the Tariff, which defines parts of general use, the Tribunal highlighted that chains fell under this category. The Tribunal also considered Section Note 1(g) in Section XVI, which excludes parts of general use from Chapters 84 and 85 of the Tariff. Based on these provisions, the Tribunal concluded that the classification of chains under Heading 84.45/48 was not permissible. The Tribunal upheld the assessment made by the Custom House, ruling out the appellants' claim for re-assessment. Consequently, the Tribunal dismissed the appeal, affirming the impugned order of the Appellate Collector of Customs.

In conclusion, the Tribunal's decision was based on a strict interpretation of the Customs Tariff provisions, particularly regarding the classification of specialized parts like chains under specific headings. The Tribunal emphasized the exclusion of parts of general use from certain chapters of the Tariff, leading to the dismissal of the appellants' claim for re-assessment.