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Issues: Classification of imported goods under specific sub-headings of the Customs Tariff Act, 1975.
Analysis: 1. The appellants imported spare parts for their furnace burner and claimed assessment under sub-heading 8416.90 CTA. However, the Asstt. Collector classified the goods under sub-heading 6815.10 CTA as non-electrical articles of graphite, excluding them from Chapter 84 based on Chapter Note 1(a) to Chapter 84 CTA. The appeal against this decision was rejected by the Collector of Customs (Appeals). 2. The appellants argued that the goods made of artificial graphite should not be classified under Heading 68.15 CTA, which covers articles of mineral substances. They relied on a Tribunal decision stating that artificial graphite blocks are not classifiable under Heading 68.15 but under Chapter 84 CTA. They emphasized that the HSN Explanatory Notes have persuasive value but do not have statutory force, and the tariff heading itself is the criterion for classification. 3. The Respondent contended that the distinction between artificial and natural substances is irrelevant for classification under sub-heading 6815.10 CTA, supported by HSN Explanatory Notes and Chapter Note 1(a) to Chapter 84 CTA. They argued that the change in CTA after 28-2-1986 is immaterial as Heading 68.15 under CCCN and HSN is identically worded. 4. The Tribunal analyzed the classification issue, noting that sub-heading 6815.10 under Heading 68.15 covers non-electrical articles of graphite or other carbon. As per the General Explanatory Note (1) to the CTA, when a description is preceded by "-", it is a sub-classification. Since the spare parts were made of artificial graphite and not natural graphite, they do not fall under Heading 68.15, allowing classification under sub-heading 8416.90 CTA as parts of a furnace burner. 5. The Tribunal upheld the appellants' reliance on a previous decision where graphite blocks made of artificial graphite were classified under Chapter 84 CTA. It emphasized that the tariff heading's clear description, along with the General Explanatory Notes, eliminates the need for HSN Explanatory Notes. The Tribunal concluded that the goods, being parts of furnace burners, fall under Heading 84.16 CTA, and the classification under sub-heading 6815.10 CTA was incorrect. The impugned order was set aside, and the appeal was allowed.
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