1988 (6) TMI 232 - AT - Customs

Summary

Issues:
Classification of goods described as "stainless steel circles defective" under CTA Tariff Heading 73.15(2) in a refund claim, distinction between Tariff Headings, interpretation of Chapter Note 1(n) to Chapter 73 for classification, applicability of two High Court decisions on the classification of stainless steel circles.

Analysis:
The appeal involved the classification of goods labeled as "stainless steel circles defective" under CTA Tariff Heading 73.15(2) in a refund claim. The appellants sought assessment under CTA Tariff Heading 73.15(1) or alternatively under Tariff Heading 73.03/05 or 73.33/40. The Assistant Collector of Customs rejected the refund claim, citing Chapter Note 1(n) to Chapter 73, which specifies that shapes like circles fall under Heading 73.13 and stainless steel circles under 73.15(2, affirming the original assessment.

Upon appeal before the Collector of Customs (Appeals), the same grounds were reiterated, and the Collector upheld the original assessment, emphasizing the legislative intention to classify stainless steel circles under Heading 73.15(2). The appellants acknowledged two relevant decisions but aimed to distinguish them based on the dimensions of the goods in question, arguing that since the maximum diameter was 355 mm, the goods were made from rectangular sheets with a width not exceeding 500 mm, thus not falling under 73.15(2.

The learned JDR relied on the aforementioned decisions, highlighting the applicability of Chapter Note 1(n) for classifying non-rectangular sheets, emphasizing the absence of specified dimensions for such shapes. The JDR contended that the attempts to differentiate the judgments failed as the Tariff Headings should be interpreted in conjunction with Chapter and Section Notes, rendering the classification under 73.15(2 appropriate.

The Tribunal carefully considered the arguments and the precedents cited, affirming that stainless steel circles are akin to sheets and hence fall under Tariff Heading 73.15(2) per Note 1(n) to Chapter 73. The attempt to distinguish based on dimensions was dismissed, as the Chapter Note intentionally omitted dimensions for non-rectangular shapes. The Tribunal, aligning with the decisions of the Delhi and Madras High Courts, rejected the appeal, upholding the classification under Heading 73.15(2 based on the established legal principles and precedents.

In conclusion, the Tribunal upheld the original assessment and rejected the appeal, emphasizing the classification of stainless steel circles under CTA Tariff Heading 73.15(2 in accordance with the Chapter Note 1(n) to Chapter 73 and the interpretations provided by the Delhi and Madras High Court judgments.