1993 (4) TMI 138 - AT - Customs

Summary

Issues: Classification of imported goods under Customs Tariff, correct classification under Central Excise Tariff, applicability of Chapter Heading 40.08, further work on rubber sheets, interpretation of Chapter Note 9 of Chapter 40.

The appeal involved a dispute regarding the correct classification of imported goods by M/s. Kasturi & Sons under the Customs Tariff. The respondents sought clearance under Chapter Heading 4008.29, but the Assistant Collector rejected the claim and classified the goods under Heading 40.16 as articles of rubber. The Collector (Appeals) allowed the claim of the respondents, classifying the goods as "Rubber Sheets" under Heading 40.08 of the Central Excise Tariff. The Revenue appealed this decision, arguing that the metal bars attached to the rubber sheets constituted further work, justifying classification under Heading 40.16. The respondents contended that the goods fell under Heading 40.08 as per Chapter Note 9 of Chapter 40, citing relevant case law to support their position.

The Assistant Collector initially classified the goods under Heading 40.16, considering the rubber blankets with metal bars attached as articles of rubber. However, the Collector (Appeals) set aside this classification, determining that the goods should be treated as "rubber sheets" under Heading 40.08. The Collector (Appeals) relied on Chapter Note 9 of Chapter 40, which includes even sheets cut to size as falling under Heading 40.08. The Tribunal referenced the case of Kerala Books and Publications Society, where a similar issue arose, and upheld the classification of the goods under Heading 40.16 based on the presence of metal bars attached to the rubber sheets. The Tribunal found that the fixing of metal strips constituted further work on the rubber sheets, aligning with the decision in the Kerala Books case.

Ultimately, the Tribunal allowed the appeal by the Revenue, setting aside the decision of the Collector (Appeals), and reinstated the classification made by the Assistant Collector under Heading 40.16. The Tribunal's decision was based on the interpretation of the goods as per Chapter Note 9 of Chapter 40 and the precedent set by the Kerala Books case. As a result, no ruling was necessary on the Stay Application filed by the appellant.

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