9911796707
|
Home
Issues: Classification of imported goods under Customs Act, 1962 - Correct assessment of duty - Interpretation of headings under CCCN - Application of Tariff Advice No. 2/80.
In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the correct classification of imported goods under the Customs Act, 1962. The Assistant Collector of Customs issued a notice to the appellants for duty amounting to Rs. 20,248.71 paise, contending that power fuse bodies were incorrectly classified under Item 85.18/27(3) instead of Item 85.18/27(1). The Assistant Collector confirmed a part of the demand, leading to an appeal to the Collector of Customs (Appeals), who upheld the original order. The appellants argued that the fuse bodies were designed for the protection of electrical circuits and made of cordiorite, not porcelain. They contended that the goods should be classified under sub-item (III) of the heading, not sub-item (I) as insulating fittings. The Collector viewed the fuse bodies as insulating fittings due to being made entirely of insulating material, guided by the explanatory note to Heading 85.26 of the CCCN. The appellants emphasized that the fuse bodies, while wholly insulating, were not specially constructed for insulating purposes but primarily for thermal characteristics. They argued against the application of Tariff Advice No. 2/80 to the consignment imported before its issuance, which was not considered by the Appellate Authority. The Revenue, represented by Shri Nair, contended that insulating fittings for electrical equipment should fall under 85.18/27(1) based on CCCN guidelines. The Tribunal analyzed the CCCN and noted that for goods to be classified under Heading 85.26, they must be made wholly of insulating material and designed for insulating purposes. The exception was for fittings not specially constructed for insulating purposes. As the fuse bodies were not found to be constructed for insulating purposes, they were correctly classifiable under sub-item (III) of the heading, contrary to the Revenue's argument. Consequently, the appeal was allowed in favor of the appellants, emphasizing the specific construction and purpose of the imported goods in determining their classification under the Customs Act, 1962 and CCCN headings.
|
