1990 (7) TMI 239 - AT - Central Excise

Summary

Issues:
Classification of "Air Buffers" under Customs Tariff Act, 1975 and Central Excises & Salt Act, 1944.

Analysis:
The appeal concerned the classification of "Air Buffers" imported by M/s. Rajasthan Udyog in January 1985 under the Customs Tariff Act, 1975. The Customs authority initially classified the goods under Heading No. 40.05/16(1) and under Item No. 16A(4) of the Central Excises & Salt Act, 1944. The appellants contended for classification under Heading 84.45/48 or alternatively under Heading 40.05/16. The Tribunal was tasked with determining the correct classification of the goods.

The appellants argued that the goods should be classified under the residual head, Item No. 68, as there was no specific item to cover the goods. They relied on a previous decision by the Tribunal in International Conveyors Ltd. v. Collector of Central Excise Bombay. The Tribunal found the relevance of this decision questionable but agreed that in the absence of a specific item, the goods should fall under Item No. 68.

Regarding the classification under the Customs Tariff Schedule, the competing headings were 40.05/16(1), 84.45/48, or 59.16/17. The appellants contended that the goods fell under Heading 59.16/17 as textile articles commonly used in machinery or plant. The Collector, however, relied on Chapter Note 2(c) to Chapter 40 to argue against this classification. The Tribunal noted that the goods were described as special components for stone-working machinery, made from fabric and special rubber, and found that the correct classification was under Heading 59.16/17.

The Tribunal also addressed the benefit of Notification No. 179/80 dated 4-9-1980, which the Collector had ruled out. The notification exempted parts required for setting up or assembly of articles falling under specified headings from basic customs duty. The Tribunal clarified that the benefit of the notification applied as long as the complete article fell under the specified headings, even if the parts themselves did not.

In conclusion, the Tribunal held that the "Air Buffers" were classifiable under Heading No. 59.16/17 of the Customs Tariff Schedule and Item No. 68 of the Central Excise Tariff Schedule. The impugned order was modified accordingly, and the appeal was allowed in favor of the appellants with consequential relief.