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Issues: Classification of Reflectors for Cinematographic Projectors and Import Licensing under OGL
In the judgment delivered by the Appellate Tribunal CEGAT, New Delhi, the appeals were heard together as they were based on common questions of facts and law. The primary issue revolved around the classification of Reflectors for Cinematographic Projectors imported by the appellants. The Customs initially classified the goods under Heading 85.18/27(4) as part of arc lamps, while the appellants claimed re-classification under Heading 90.02 CTA (read with Heading 90.08) as parts of Projectors. Additionally, the Assistant Collector questioned whether the ITC Licence produced by the appellants covered the imported goods. The first question addressed in the judgment was the correct classification of the reflectors imported by the appellants and whether these goods could have been imported under Open General Licence (OGL). The advocate for the importers argued that the reflectors should be considered as part of Projectors due to being lens or mirrors that were mounted. He referenced the CCCN explanatory notes and Interpretative Rule 3 to support the reclassification under Heading 90.02, which specifically covered mirrors for instruments like Projectors. On the other hand, the SDR contended that the reflectors were meant for arc lamps, which were used in Projectors, and therefore should be classified accordingly. He also argued that the goods were not eligible for clearance under OGL as they were listed under Appendix 5. After considering the arguments from both sides, the Tribunal concluded that the reflectors, being mounted mirrors, fell under Heading 90.02 as parts of instruments or apparatus, supporting the reclassification sought by the importers. Consequently, the appeal filed by the Revenue regarding classification was rejected, while the appeal by the importers was allowed on this specific issue. However, concerning the import licensing aspect, the Tribunal upheld the decision that mirrors/reflectors for carbon arc lamps were not allowed under OGL as per Item No. 434 in Appendix 5 of the relevant Import Policy. Therefore, the Tribunal rejected the appeal by Standard Theatre Supply Co. regarding licensing. In conclusion, both appeals were disposed of based on the classification issue, with the Tribunal ruling in favor of the importers on the classification of reflectors under Heading 90.02 but upholding the decision on import licensing under OGL for mirrors/reflectors for carbon arc lamps.
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