1991 (5) TMI 141 - AT - Customs

Summary

Issues:
Classification of imported goods under Customs Tariff - Whether the imported goods are stainless steel or special alloy steel.

Detailed Analysis:

Issue 1: Classification of imported goods under Customs Tariff
The case involved the classification of imported Hot Rolled Annealed Wire Rods under the Customs Tariff. The dispute arose when the Assistant Collector classified the goods as stainless steel due to chromium content exceeding 12%, leading to the denial of a refund claim under a concessional duty rate notification. The appellants argued that the goods were special alloy steel with high aluminum content, distinct from stainless steel, and used in the electrical industry for their resistivity properties. The Department contended that any alloy steel with over 12% chromium should be categorized as stainless steel, citing technical definitions and previous tribunal decisions.

Analysis:
Upon reviewing the submissions, the Tribunal focused on determining whether the imported steel alloys, despite high chromium content, could be considered distinct from stainless steel for classification. The Department relied on technical definitions from metallurgy sources and previous tribunal decisions to support their stance that chromium content above 12% categorizes steel as stainless steel. However, the appellants emphasized the unique properties of the imported Alferon wire rods, specifically their high resistivity due to aluminum content, which differentiated them from stainless steel in commercial and trade parlance. The Tribunal referenced the popular meaning principle in classifying goods and concluded that the goods in question, known as Alferons, were special alloy steel and not stainless steel based on their high resistivity properties.

Precedent and Conclusion:
The Tribunal's decision aligned with the appellants' argument, supported by the principle of classifying goods based on their popular or commercial understanding rather than technical definitions. The judgment referenced a previous case to reinforce the classification of steel wire with similar chromium and aluminum content as resistance wire, not stainless steel. The Tribunal set aside the previous order, allowed the appeal, and directed the Assistant Collector to grant a refund to the appellants, emphasizing the distinct classification of the imported goods as special alloy steel, not stainless steel.