1991 (7) TMI 195 - AT - Customs

Summary

Issues:
Classification of imported goods under the Customs Tariff - Whether the goods are Artificial Flowers or components of Electric Lamps.
Applicability of OGL under AM-1988-91 Import Policy.
Interpretation of Heading 67.02 and Heading 90.01 of the Customs Tariff.
Classification of the disputed goods as parts of Optic Fibre Lamps under sub-heading 9405.99.

Analysis:
The appeal was filed against the order of the Additional Collector of Customs, Bombay, concerning the classification of 17,500 pieces of flower fibre optic elements imported by the appellants. The appellants claimed the goods as components of Fibre Optical Lamps under OGL Appendix 6(1) of AM-1988-91 policy. The dispute arose as the authorities alleged the goods to be Parts/Sub-assemblies of Artificial Flowers classifiable under Heading 67.02 of the Customs Tariff and covered by Import Policy Item No. 13 of Appendix 2(b) of AM-1988-91. The appellants contended that the goods were optical fibre elements for electric lamps, classifiable under Heading 90.01 of the Customs Tariff.

In the impugned order, the Additional Collector classified the imported goods as Artificial Flowers under Heading 67.02, rejecting the appellants' claim. The appellants argued that the goods were optic fibre bundles for Optic Fibre Lamps, correctly classifiable under Heading 90.01. The Department maintained that the goods resembled Artificial Flowers and should be classified as such under Heading 67.02.

Upon examination of the goods and relevant tariff headings, it was found that the imported goods consisted of fibre optic elements and coloured flowers in a bundle, designed for use in Optic Fibre Lamps. The goods did not resemble traditional Artificial Flowers used for decoration, supporting their classification as components of Electric Lamps under Heading 90.01, not under Heading 67.02.

The Explanatory Notes to Heading 90.01 of the Customs Tariff were considered, indicating that optical fibres, including bundles bound at one end, were suitable for illumination purposes. The goods in question, with added coloured flowers made of optical fibres, were deemed fit only as components of Optic Fibre Decorative Lamps, falling under sub-heading 9405.99 as parts of 'other electric lamps' under sub-heading 9405.40.

The Tribunal concluded that the imported goods were parts of Optic Fibre Lamps, directing further consideration of their coverage under OGL in light of the appellant's SSI Registration Certificate. Consequently, the Additional Collector's order was set aside, and the appeal was remanded for the decision on OGL applicability based on the Certificate.