1989 (9) TMI 240 - AT - Central Excise

Summary

Issues Involved:
1. Classification of imported goods under the correct tariff heading.
2. Consideration of trade parlance versus dictionary meaning for classification.
3. Determination of whether further processing affects classification.

Issue-Wise Detailed Analysis:

1. Classification of Imported Goods under the Correct Tariff Heading:
The appellants sought reassessment of imported goods under Heading No. 90.01 of the CTA 1975 and C.V.D. under Heading 68 of CET, instead of No. 70.01/16 of CTA 75 and 23A(4) of the Central Excise Tariff. The Assistant Collector of Customs (Refunds) classified the goods as "thick mirror" under Heading No. 70.01/16 of CTA and 23A(4) of CET, rejecting the appellants' claim. The Collector of Customs (Appeals) upheld this classification, stating the goods were glass sheets yet to be converted into mirrors.

2. Consideration of Trade Parlance versus Dictionary Meaning for Classification:
The appellants argued that the goods were known in trade as "mirrors" and should be classified under Heading 90.01. They cited the Atul Glass Industries Ltd. case, where the Supreme Court emphasized that the functional character of an article should determine its classification. The court noted that a glass mirror, due to its reflective function, is distinct from mere glass and should not be classified as glassware.

3. Determination of Whether Further Processing Affects Classification:
The appellants contended that the imported goods were already mirrors, despite requiring additional processing to enhance optical clarity. The Collector (Appeals) and Assistant Collector of Customs (Refunds) had classified the goods based on their form as glass sheets, not considering the trade understanding. The Supreme Court in Atul Glass Industries Ltd. highlighted that a glass mirror undergoes significant transformation from a glass sheet, and its primary function as a mirror should dictate its classification.

Conclusion:
The Tribunal concluded that the imported goods, described as "mirrors in silvered cleared float glass" and referred to as "thick mirror" in trade, should be classified under Item 90.01. The Tribunal emphasized the importance of trade parlance over dictionary meaning and noted that further processing to enhance optical clarity did not alter the primary function of the goods as mirrors. The appeal was allowed, granting the appellants the relief sought.