1990 (1) TMI 256 - AT - Customs

Summary

Issues:
- Restoration of order-in-original passed by Assistant Collector of Customs
- Classification of imported Ceramic Pythagoras tubes for C.V. duty under CET

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the restoration of an order-in-original passed by the Assistant Collector of Customs, Bombay, by setting aside the order-in-appeal passed by the Collector of Customs (Appeals). The central issue in this case was the classification of imported goods, specifically Ceramic Pythagoras tubes, for the purpose of C.V. duty under the Customs Tariff. The Customs House initially classified the goods under Item 23(B)(4) of the CET, while the Assistant Collector upheld this classification under heading 69.03 of the Customs Tariff. However, the Collector of Customs (Appeals) disagreed with this view and classified the imported Pythagoras tubes under heading 68 of the CET.

The disagreement in classification arose from the interpretation of the descriptions under Item 23-B of the CET, which pertains to "Chinaware and porcelain ware, all sorts," and heading 69 of the Customs Tariff, which pertains to "Ceramic products." The Revenue argued that the dictionary definition of 'Ware' as things manufactured for sale, specifically pottery, supported the classification under Item 23B of CET. On the other hand, the Respondent contended that the goods should be classified based on their understanding in Trade Parlance, emphasizing that the burden of proof lay on the Department.

During the proceedings, both parties presented their arguments, with the Revenue relying on the dictionary meaning of 'Ware' and the Respondent emphasizing the commercial understanding of Ceramic products in trade. The Tribunal referred to various legal precedents, including judgments by the Hon'ble Supreme Court, emphasizing the importance of interpreting classification based on popular meanings or commercial sense rather than technical definitions. The Tribunal noted that the Department failed to provide evidence supporting the classification of the imported Ceramic Pythagoras tubes as 'China-ware' in the commercial sense.

Ultimately, the Tribunal upheld the order-in-appeal by the Collector of Customs (Appeals), dismissing the appeal by the Revenue. The decision was based on the application of well-established legal principles and the lack of merit in the Revenue's arguments. The Tribunal's decision aligned with the commercial understanding of the imported product and the legal precedents cited during the proceedings.