1991 (2) TMI 253 - AT - Customs

Summary

Issues:
1. Classification of imported goods under the Customs Tariff Act, 1975.
2. Applicability of Customs Notification No. 69/87 for reassessment and refund.
3. Interpretation of Heading No. 98.06 and its application to the subject goods.
4. Impact of the proviso (iii) of Notification No. 69/87 on the classification and eligibility for benefits.
5. Consideration of statutory notes and judicial precedents in determining the classification of goods.

Analysis:
The case involved an appeal by M/s. Manipal Power Press challenging the order of the Collector of Customs (Appeals), Madras, regarding the classification and assessment of imported Dampening Sleeves made of plastics under the Customs Tariff Act, 1975. The appellants sought reassessment and refund under Customs Notification No. 69/87, which was rejected by the authorities, leading to the appeal before the tribunal.

The main contention revolved around the classification of the goods, with the appellants arguing that the goods should be classified under Heading No. 98.06 as parts of printing machines. The respondent, however, contended that the goods were non-woven textile articles, potentially falling under the proviso (iii) of Notification No. 69/87, thus impacting their eligibility for benefits.

The tribunal analyzed the statutory notes and relevant provisions to determine the classification. It was noted that the goods, though made of plastics, were specially designed parts for use in offset printing machinery. Referring to Chapter 98 and the statutory notes, the tribunal concluded that the goods fell under Heading No. 98.06, making them eligible for the benefits under Notification No. 69/87.

Citing a judgment by the Madhya Pradesh High Court, the tribunal emphasized that goods made of plastic, even if not synthetic textile materials, would be classified under the chapter relating to plastics. Therefore, the original classification under Heading No. 3926.90 was upheld, but for the purpose of the notification, the goods were deemed to fall under Heading No. 98.06, allowing for the benefits under the notification.

Ultimately, the tribunal set aside the impugned order, allowing the appeal and granting consequential relief to the appellants based on the classification under Heading No. 98.06 and the eligibility for benefits under Notification No. 69/87.