1989 (12) TMI 184 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff Act

Detailed Analysis:

1. Classification Dispute:
The appeal challenges the order of the Collector of Customs rejecting the appellant's appeal against the Assistant Collector's classification of imported goods. The goods were described as technical documentation valued at Rs. 90,755/- CIF, initially claimed under Heading 4901.99 with a Nil rate of duty. However, the Custom House proposed to classify them under Heading 4911.99, attracting a 100% duty rate, as they were considered "Other printed matter" without book attributes.

2. Appellant's Argument:
The appellant contended that the goods were technical documentation covered under Heading 4901.99, not trade catalogues under Heading 4911.99. They referenced a license agreement with US collaborators to support that the imported material was technical manuals about the product, not trade catalogues. The appellant argued that the goods were in the form of technical documents in loose leaf binders, falling within the scope of Heading 4901.99.

3. Respondent's Position:
The learned SDR representing the respondent supported the Collector (Appeals)'s classification under Heading 4911.99, asserting that there was no error in adopting this classification for the imported goods. The respondent argued that the order confirmed by the Collector (Appeals) accurately reflected the Assistant Collector's classification decision.

4. Tribunal's Decision:
After reviewing submissions and examining representative samples of the imported goods, the Tribunal found that the goods were technical documents in loose leaf binders containing technical manuals and brochures from foreign collaborators. The Tribunal noted that the contents of the material aligned with the terms of the collaboration agreement, emphasizing the transfer of technical know-how. The Tribunal disagreed with the Collector (Appeals)'s conclusion that the goods were trade catalogues, highlighting the specific nature of the imported material as technical documentation related to the licensed products. Referring to the Explanatory Notes to Harmonised Commodity Description and Coding System (HSN), the Tribunal concluded that the goods fell under Heading 4901.99, considering their nature, content, and form in the context of the collaboration agreement. Consequently, the appeal was allowed, and the classification under Heading 4901.99 was upheld.

This detailed analysis outlines the classification dispute, the arguments presented by both parties, the Tribunal's assessment of the imported goods, and the ultimate decision in favor of classifying the goods under Heading 4901.99 based on their technical nature and collaboration agreement context.