1987 (1) TMI 249 - AT - Customs

Summary

Issues: Classification of imported items under specific tariff headings.

In this case, the appellants imported items claimed to be spares for a steel plant's Merchant Mill, arguing for classification under heading 72(3) ICT at 35% ad valorem. The total assessable value was Rs. 2,56,404, with some items assessed differently. The Appellate Collector found that most items were classifiable under heading 72(3) ICT, except 40 items. The appellants contended that all items should be classified under heading 72(3) ICT as component parts of machinery. The Departmental Representative argued that the 40 items were rightly classified under headings 63(33) or 63(12) ICT at 60%. The Tribunal noted that the essential issue was whether the items performed the essential function and answered the broad description of the relevant tariff heading, not based on the manufacturing process or common knowledge of the items. Consequently, the Tribunal upheld the classification by the Appellate Collector.

Regarding relief granted by the Appellate Collector for items other than the specified 40, the appellants faced challenges in providing separate valuations due to reorganization affecting original records. They attempted separate valuation based on supplier quotations and orders placed. The Tribunal allowed the appellants to submit their claim for refund with the required information within three months to avail relief as directed by the Appellate Collector's order. Ultimately, the appeal was dismissed, affirming the classification decision made by the Appellate Collector.