1993 (10) TMI 139 - AT - Customs

Summary

Issues Involved:
1. Classification of imported goods under the Customs Tariff Act.
2. Requirement of an import license under the Import Policy.

Issue-wise Detailed Analysis:

1. Classification of Imported Goods:
The primary issue in this case was the classification of "Correctable Film Ribbons Jumbo Rolls" imported by the appellants. The appellants argued that the goods should be classified under Heading 96.12 as "Typewriter or similar ribbons," while the Customs authorities classified them under Heading 39.20 as "Other plates, sheets, film, foil and strip of plastics."

The appellants contended that the plastic film, coated with carbon, had been prepared for giving impressions and thus acquired the essential character of typewriter ribbons as per Rule 2(a) of the General Rules for the Interpretation of the Customs Tariff. They argued that the goods were described as "Correctable Film Ribbons" in the invoice, indicating their true nature.

However, the Customs authorities emphasized the physical dimensions of the goods, noting that they were 660 mm wide and not suitable for use as typewriter ribbons. The Explanatory Notes of the HSN for sub-heading 96.12 specify that ribbons must be inked or otherwise prepared to give impressions and typically should not exceed 3 cm in width. The imported goods, being 660 mm wide, did not meet this criterion.

The Tribunal agreed with the Customs authorities, noting that the goods were not typewriter ribbons at the time of importation. The process of manufacturing typewriter ribbons from the imported goods involved several steps, including slitting the jumbo rolls and further processing. Therefore, the goods were correctly classified under Heading 39.20 as "Other plates, sheets, film, foil and strip of plastics."

2. Requirement of Import License:
The second issue concerned the requirement of an import license for the goods. The Deputy Collector had ordered confiscation of the goods under Section 111(d) of the Customs Act, citing that the goods fell within the ambit of entry 404 of Appendix 3, Part A, of the Import Policy, which required a specific license.

The Collector (Appeals) had set aside the order of confiscation and remanded the matter to the Deputy Collector for fresh adjudication, as the Deputy Collector had gone beyond the scope of the show cause notice by referring to a different entry in the Import Policy. The appellants argued that the Tribunal should also address the issue of the import license.

The Tribunal held that since the matter of the import license had been remanded to the Deputy Collector for fresh adjudication, it was not appropriate for the Tribunal to decide on this issue at this stage. The appellants were required to subject themselves to the process of adjudication before the Deputy Collector.

Conclusion:
The Tribunal upheld the classification of the imported goods under Heading 39.20 of the Customs Tariff Act and rejected the appellants' claim for classification under Heading 96.12. The issue of the import license was remanded to the Deputy Collector for fresh adjudication, and the Tribunal did not consider it appropriate to decide on this matter at this stage. The appeal was rejected on both counts.