1987 (5) TMI 258 - AT - Customs

Summary

Issues: Classification of imported goods under the Customs Tariff Act, 1975

Classification of Goods:
The case involved the classification of imported Aircraft Baggage Conveyors under the Customs Tariff Act, 1975. The dispute arose when the revenue assessed the goods under Heading 87.03, while the appellants claimed re-assessment under Heading 84.22. The Assistant Collector classified the goods under Heading 87.03, considering them as special purpose vehicles. However, the Appellate Collector reclassified the goods under Heading 87.07. The appellants appealed to the Tribunal, seeking classification under Heading 84.22 for the entire unit.

Appellants' Arguments:
The Deputy Stores Manager representing the appellants argued that the goods should be assessed under Heading 84.22 based on the characteristics of the imported APL 750 model. He highlighted that the split-up invoice provided by the supplier indicated separate values for the chassis, hydraulic system, and engine/transmission. The appellants contended that the imported item, primarily used for lifting luggage, did not require registration under the Motor Vehicle Act. They referred to a Karnataka High Court judgment to support their claim that excise duty was not applicable to a motor vehicle unsuitable for public roads.

Respondent's Arguments:
The learned S.D.R. representing the respondent contended that the predominant value of the imported goods was the motor vehicle itself, justifying classification under Heading 87.03. Referring to previous Tribunal decisions and the CCCN provisions adopted in the Customs Tariff Act, the respondent argued that the correct classification was under Heading 87.03. They emphasized that the Assistant Collector's classification was legally sound, and Central Excise duty was correctly charged based on the value of the vehicle.

Tribunal's Decision:
After considering the arguments and examining the relevant headings under the Customs Tariff Act, 1975, the Tribunal concluded that the goods fell under Heading 87.07. They emphasized that imported goods should be assessed under the most specific and appropriate heading. The Tribunal rejected the appeal, upholding the classification under Heading 87.07 and dismissing the appellants' claim for classification under Heading 84.22. The judgment highlighted the importance of precise classification based on the nature and characteristics of the imported goods.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, and the Tribunal's decision regarding the classification of the imported goods under the Customs Tariff Act, 1975.