1993 (2) TMI 212 - AT - Customs

Summary

Issues:
Classification of imported goods under Customs Tariff Act, 1975 and Customs exemption Notification 190/90.

Analysis:
The case involved the classification of imported goods under Customs Tariff Act, 1975, and Customs exemption Notification 190/90. The appellants imported a consignment described as components of zip fasteners, consisting of coil in running length and side tape for zip in coil. The Custom House classified the goods separately under different headings. The Assistant Collector held that the chain scoops imported were classified as zip coils and not as parts of zip fasteners, as claimed by the appellants. The Collector of Customs (Appeals) upheld this decision. The appellants contended that the chain scoops were parts of zip fasteners and eligible for exemption under the Notification. The arguments centered on the interpretation of the Notification and the classification of the goods.

The examination report confirmed that the imported goods were chain scoops made of plastic in running length. The HSN Explanatory Notes clarified that slide fasteners consist of narrow strips with chain scoops, sliders, or runners. It was emphasized that chain scoops not attached to side tapes cannot be considered as zip coils. Therefore, the chain scoops imported without being attached to side tapes were deemed eligible for exemption under the Notification. The lower authorities' conclusion was deemed unsustainable, and the appeal was allowed in favor of the appellants.

In conclusion, the judgment focused on the proper classification of the imported goods under the Customs Tariff Act and the Customs exemption Notification. The decision hinged on whether the chain scoops imported by the appellants were to be classified as zip coils or as parts of zip fasteners eligible for exemption. The HSN Explanatory Notes played a crucial role in interpreting the classification of the goods. Ultimately, the chain scoops imported without side tapes were considered eligible for exemption under the Notification, overturning the lower authorities' classification.