1990 (1) TMI 255 - AT - Customs

Summary

Issues: Classification of imported goods under Item 15A CET - Film form vs. end use

Detailed Analysis:

1. Issue: Classification of imported goods under Item 15A CET
- The case involved a dispute regarding the classification of a consignment of 'Synthetic Resin in film form' imported by M/s. Hindustan Aeronautics Ltd.

2. Detailed Analysis:
- The original assessment classified the goods under heading 39.01/06 CTA with a specific duty rate. Subsequently, a demand was raised reclassifying the goods under a different item, which was confirmed in the order-in-original.
- The respondents appealed, and the Collector of Customs (Appeals) held that the goods were classifiable under a specific item under CET.

3. Issue: Film form vs. end use for classification
- The Revenue contended that the form in which the item is imported determines its classification under CET, not its end use. They argued that the item fits under a different item than the one classified by the lower Appellate authority.

4. Detailed Analysis:
- The Departmental Representative argued that the imported product, Redux 775 film, falls under a specific Tariff Item that includes articles made of plastics in various forms, including sheets and foils.
- They emphasized that the product, being in film form, aligns with the description under a different Tariff Item than the one it was classified under by the lower authority.

5. Issue: Nature of the imported product and its classification
- The respondents argued that the imported product, though in film form, should be classified differently based on its nature as a bonding material and resin used for specific purposes.

6. Detailed Analysis:
- The Deputy General Manager for the respondents explained that the imported product, Redux film 775, is a resin in sheet (solid) form used for bonding aluminum sections of a helicopter rotor head.
- They contended that the precision required in their application necessitates the product to be in sheet form for convenience and uniform application, falling under a specific Tariff Item.

7. Judgment:
- The Tribunal analyzed the Tariff Items and the nature of the imported product, concluding that the product, being a resin in film form, aligns with a specific Tariff Item different from the one classified by the lower authority.
- The Tribunal upheld the Revenue's contention, setting aside the lower authority's decision and restoring the order-in-original passed by the Assistant Collector of Customs, Madras.

8. Additional Decision:
- The Tribunal also rejected the cross-objection filed by the respondents, deeming it not maintainable and time-barred.

This detailed analysis outlines the key issues, arguments presented by both parties, and the Tribunal's judgment regarding the classification of the imported goods under the relevant Tariff Items.