1988 (11) TMI 216 - AT - Customs

Summary

Issues:
1. Appeal against the order of the Collector (Appeals) regarding the import of steering wheel covers.
2. Determination of whether steering wheel covers are accessories permissible for import under the Import and Export Policy.
3. Interpretation of the ruling of the Special Bench in a similar case.
4. Classification of steering wheel covers as accessories or consumer goods for import purposes.

Detailed Analysis:

The appeal before the Appellate Tribunal CEGAT, CALCUTTA pertained to the Collector of Customs, Calcutta challenging the order of the Collector (Appeals) regarding the import of steering wheel covers. The Collector (Appeals) had set aside the original order and deemed the steering wheel covers not permissible for import under the relevant license held by the respondent. The main issue for consideration was whether the steering wheel covers qualified as accessories under the Import and Export Policy 1985-88 or were classified as consumer goods, thereby not permissible for import.

In the impugned order, the Collector (Appeals) relied on a ruling by the Special Bench of the Tribunal in a previous case, where it was determined that steering wheel covers, by providing a better grip to the driver, could be considered accessories covered by the import license. The Ld. S.D.R. representing the appellant argued that the steering wheel covers were merely luxury items and did not enhance the effectiveness of the motor vehicle, thus classifying them as consumer goods not permissible for import under the license.

Conversely, the Ld. counsel for the respondent contended that the issue was squarely covered by the Special Bench ruling, emphasizing that the imported goods were accessories, not consumer items. After considering the arguments, the Tribunal found that the issue was indeed covered by the Special Bench ruling, which they adopted and accepted. The Tribunal also noted that the Customs department had classified the product under the category of parts and accessories of motor vehicles for duty purposes, further supporting the classification of the steering wheel covers as accessories.

Ultimately, the Tribunal upheld the impugned order appealed against, dismissing the appeal by the Collector of Customs. The Tribunal's decision was based on the classification of the steering wheel covers as accessories for Customs purposes and the precedent set by the Special Bench ruling, which deemed such items permissible for import under the relevant license.