1986 (10) TMI 194 - AT - Customs

Summary

Issues: Classification of Electrolytic Condensors under Tariff Heading 85.15 or 85.18/27(2) of the CTA 1975, and the applicability of Notification 341/76-Cus. for goods imported from Yugoslavia.

Detailed Analysis:

1. Classification Issue:
The primary issue in this appeal is the classification of Electrolytic Condensors imported by the appellants. The dispute revolves around whether these condensors should be classified under Tariff Heading 85.15 or under Tariff Heading 85.18/27(2) of the Customs Tariff Act, 1975. The lower authorities classified the condensors under Tariff Heading 85.18/27(2) as Electrical Capacitators, while the appellants argued that they should be classified under Tariff Heading 85.15 as parts of Radio Reception apparatus. The appellants emphasized the differences between Electrolytic Capacitators and Electrical Capacitators, highlighting distinctions in form, design, function, and usage with D.C. Circuits, asserting that the goods should not fall under Tariff Heading 85.18/27(2.

2. Arguments by the Revenue:
The Revenue, represented by the learned SDR, contended that the Electrical Capacitators specified in Heading 85.18/27(2) encompass all types of Electrical Capacitators, including Electrolytic Capacitators. The SDR supported this argument by referencing the Explanatory Notes of CCCN under Heading 85.18/27(2), which state that Electrical Capacitators serve various purposes in the electrical industry and cover all capacitors regardless of their intended use. Additionally, the SDR cited the definition of Capacitators (Electrical) from Mcgraw Hill's Dictionary of 'Scientific and Technical Terms' to support the inclusion of Electrolytic Capacitators under the specified heading.

3. Country of Origin Issue:
Another aspect raised was the determination of the country of origin of the imported goods. The Revenue argued that under the Determination of Origin rules, the importer must make a claim at the time of importation, which was allegedly not done in this case. However, the appellants countered that the country of origin was evident from the invoice, and the rejection of their claim was based on the classification issue rather than the failure to claim origin at importation.

4. Judgment and Conclusion:
After considering the arguments presented by both parties, the Tribunal upheld the classification of the Electrolytic Condensors under Tariff Heading 85.18/27(2) as Electrical Capacitators. The Tribunal agreed with the Revenue's position that Electrolytic Capacitators are a type of Electrical Capacitator and fall within the scope of the specified tariff heading. The Tribunal relied on the Explanatory Notes of CCCN and the principle that goods described in Chapter 85 are to be classified according to the headings in that chapter. Consequently, the appellants' attempt to distinguish between Electrolytic and Electrical Capacitators was deemed insignificant for classification purposes. As a result, the question of benefiting from Notification 341/76-Cus. for goods imported from Yugoslavia under Tariff Heading 85.15 did not apply in this case. Therefore, the appeal was rejected based on the classification of the goods under Tariff Heading 85.18/27(2.