1987 (1) TMI 344 - AT - Customs

Summary

Issues: Classification of imported goods under the Customs Tariff

Issue 1: Classification under Heading 70.21 vs. Heading 90.24
The dispute in this case revolves around the classification of reflex gauge glass imported by the party. The Assistant Collector classified the goods under Heading 70.21, considering them as tubeless glass designed for reading liquid levels through a boiler. The party, however, claimed assessment under Heading 90.24 read with Heading 90.29, arguing that the goods should be considered as level gauges and hence excluded from Chapter 70. The Appellate Collector upheld the Assistant Collector's classification under Heading 70.21, emphasizing that gauge glasses are industrial glass classified under this heading.

Issue 2: Appellant's Arguments and Submissions
The appellant, represented by Shri N.C. Sogani, contended that Note 1(d) to Chapter 70 excludes goods falling under Chapter 90, specifically mentioning level gauges under Heading 90.24. The appellant argued that the goods should be classified under Heading 90.29 or 90.24, as they are essential parts of liquid level gauges. Alternatively, the appellant proposed classification under Heading 70.17/18 if the former classifications were not accepted.

Issue 3: Department's Position and Precedent
The department, represented by Shri G.V. Naik, reiterated its stance before the lower authorities and cited a previous decision in a similar case to support its argument. The department's position aligned with the lower authorities' decision to classify the goods under Heading 70.21.

Issue 4: Tribunal's Analysis and Decision
The Tribunal carefully reviewed the facts, orders of the lower authorities, and submissions made by both parties. The appellant sought classification under Heading 90.24, emphasizing that gauge glasses are integral components of liquid level gauges. The Tribunal observed that the literature provided by the appellant described the importance of sight glasses in liquid level gauges, supporting their classification under Heading 90.24 or 90.29. The Tribunal differentiated this case from the precedent cited by the department, emphasizing the essential role of reflex glasses as parts of level gauges. Consequently, the Tribunal concluded that the goods should be classified under Heading 90.29 of the Customs Tariff, allowing the appeal in favor of the appellants.

In conclusion, the Tribunal ruled in favor of the appellant, holding that the imported goods, reflex gauge glass, should be classified under Heading 90.29 of the Customs Tariff, contrary to the classification under Heading 70.21 by the lower authorities.