1991 (2) TMI 259 - AT - Customs

Summary

Issues: Classification of imported Duramatic Tyres under Customs Tariff Act.

In this case, the appellants imported Duramatic Tyres described as "solid industrial tyres" and claimed a refund of customs duty, arguing that the tyres were only for fork lift trucks, not interchangeable for motor vehicles. The Assistant Collector rejected the claim, citing Heading 4012.90 of the Customs Tariff Act. The Collector (Appeals) upheld this decision, referring to Section Note 1(a) of Section XVI of the Schedule, excluding rubber articles from Section XVI. The Tribunal considered the manufacturers' leaflet describing the tyres as suitable for forklift trucks, not motor vehicles, and analyzed the relevant headings and notes in the Schedule.

The Tribunal noted that solid tyres like the imported goods generally fall under Heading 4012.90 but disagreed with the Collector (Appeals) on the application of Section Note 1(a) of Section XVI. The Tribunal found that forklift truck parts, even if rubber articles, do not come under Section XVI, leaving the classification under Section XXI. Heading 98.06 under Section XXI covers parts of machinery, including tyres, meeting the conditions specified, irrespective of other headings. The Tribunal emphasized that the subject tyres qualify for classification under Heading 98.06 despite the usual classification under Heading 40.12 for solid tyres.

The Tribunal rejected the Revenue's argument that Chapter 98 is unique and that the tyres should be classified under Heading 40.12. Instead, it held that a harmonious reading of headings and notes leads to classification under Heading 98.06 for the subject goods. Moreover, the Tribunal applied Rule 3 for classification under multiple headings, favoring the more specific description provided by Heading 98.06 over the general description of Heading 40.12. Consequently, the Tribunal set aside the impugned order, allowing the appeal and granting relief to the appellants, emphasizing the correct classification under Heading 98.06 for the imported Duramatic Tyres.