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Issues: Classification of clamps packed separately from glass fibre filter bags under Tariff Heading 70.20 or 73.33/40(2) of the CET.
Issue 1: Classification of clamps under Tariff Heading 70.20 or 73.33/40(2) of the CET. The appellants imported Glass Fibre Filter Bags with clamps packed separately. They argued that the clamps are essential for the bags' functionality and should be classified under T.I. 70.20 for glass fibre articles. The Assistant Collector classified the clamps under Heading 73.33/40(2) as stainless steel articles. The Collector upheld this classification, stating that Rule 2(a) of the CTA, which deals with unfinished products, does not apply as the bags are complete by themselves. The Collector emphasized Rule 3(a) of the Interpretative Rules, preferring specific descriptions for classification. The appellants cited precedents but the Department argued the clamps were not specially designed for the bags and were of general purpose. Issue 2: Interpretation of rules and precedents for classification. The appellants relied on Rule 2(a) of the Interpretative Rules, stating that the clamps, as essential parts of the bags, should be classified under T.I. 70.20. They referenced a Tribunal order and a Supreme Court judgment to support their argument. However, the Department contended that the clamps were not specifically designed for the bags and the invoices indicated separate classification. The Tribunal noted that Rule 2(a) applies to incomplete articles taking complete form upon assembly, which is not the case here. The clamps are functional components of the bags, but their classification should be based on specific tariff headings. Issue 3: Application of specific tariff entries for classification. The Tribunal emphasized that the clamps, made of stainless steel, fall under Heading 73.33/40(2), distinct from T.I. 70.20 for glass fibre articles. While acknowledging the clamps' necessity for bag functionality, the Tribunal held that the specific entry for stainless steel articles governs classification. The Tribunal rejected the appellants' argument that the clamps should be classified under T.I. 70.20 due to their essential nature for the bags, as the specific entry for stainless steel articles takes precedence. Consequently, the Tribunal upheld the lower authorities' classification and rejected the appeals. In conclusion, the Tribunal ruled that the clamps packed separately from glass fibre filter bags are to be classified under Heading 73.33/40(2) as articles of stainless steel, not under T.I. 70.20 for glass fibre articles. The decision was based on the specific tariff entry governing stainless steel articles, despite the clamps' essential role in the bags' functionality. The Tribunal found no grounds to interfere with the lower authorities' orders and dismissed the appeals.
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