1987 (4) TMI 318 - AT - Customs

Summary

Issues:
Classification under the Import Customs Tariff Schedule, 1975 of "Master Boards" imported by the appellant.

Detailed Analysis:

1. Classification Issue:
The issue in this case revolves around the classification of "Master Boards" under the Import Customs Tariff Schedule, 1975. The goods, as described in the manufacturer's literature, consist of a laminar structure with a calcium silicate matrix reinforced with cellulose, intended for the manufacture of fire check doors. The Assistant Collector initially classified the goods under Item No. 68.01/16(1) based on the Customs Cooperation Counsel Nomenclature (C.C.C.N.) explanatory notes. The Appellate Collector, however, classified the goods under Heading 68.09 of the C.C.C.N. and under Heading No. 68.01/16 of the Indian Tariff Schedule.

2. Contention of the Appellants:
The appellants argued that due to the low percentage (9%) of cellulose fiber in the goods and the predominant presence of calcium silicate, the goods should not be classified as articles of cellulose agglomerated with calcium silicate under Heading 68.01/16(1). They also contested the lower authorities' ruling that the goods do not fall under Chapter 38 of the Tariff Schedule due to being finished articles.

3. Legal Interpretation:
The Tribunal analyzed the composition of the goods, emphasizing that for a product to be considered an article of vegetable material, it should primarily consist of vegetable material. Given that the cellulose fiber content is only 9%, the Tribunal concluded that the goods cannot be classified as articles of vegetable material agglomerated with mineral binders. The Tribunal also referred to a judgment of the Gujarat High Court regarding the principal ingredient of a product to support their decision.

4. Final Decision:
The Tribunal held that the goods fall under Heading 68.01/16(1) of the Customs Tariff Schedule as "articles of other mineral substances, not elsewhere specified or included." They noted that the presence of the mineral binder as the major component did not alter the classification, as the cellulose fiber component was only 9%. Consequently, the appeal was rejected, affirming the classification under Heading 68.01/16(1) of the Tariff Schedule.

In conclusion, the judgment clarifies the classification of "Master Boards" based on their composition and intended use, highlighting the significance of the predominant material in determining the appropriate tariff heading.