1994 (5) TMI 64 - AT - Customs

Summary

Issues:
Classification of imported goods under sub-heading 6902.20 CTA as refractory bricks or under sub-heading 7016.90 as glass constructional goods.

Detailed Analysis:

1. Classification Dispute: The appellants imported goods described as refractory components for a glass furnace, claiming classification under sub-heading 6902.20 CTA as refractory bricks. However, the Department assessed the goods under sub-heading 7016.90, which covers glass constructional goods. The dispute arose as the goods had a composition of 98.9% silica oxide, leading to conflicting classifications.

2. Appellant's Argument: The appellants contended that the lower authorities erred in interpreting sub-heading 6902.20, arguing that it should cover refractory bricks with more than 50% silica. They referenced HSN Explanatory Notes and ISI Glossary to support their claim that silica refractories fall under this sub-heading. They emphasized the high-temperature resistance of silica refractories, distinguishing them from glass materials.

3. Department's Position: The Department argued that sub-heading 6902.20 specifically covers refractory bricks with more than 50% alumina, not silica. They cited Chapter Note 4 to Chapter 70 CTA to support their classification of the goods under sub-heading 7016.90, considering silica as the essential character of the goods.

4. Legal Analysis: The Tribunal analyzed the competing sub-headings, highlighting the definitions and scope of sub-heading 6902.20 and 7016.90 in the Customs Tariff Act. They referred to HSN Explanatory Notes, emphasizing the international expertise in tariff classification. The Explanatory Notes clarified that refractory goods must resist high temperatures and be designed for high-temperature work, listing various types of refractory materials.

5. Decision: After careful consideration, the Tribunal ruled in favor of the appellants. They concluded that the imported goods, with high-temperature resistance up to 1700oC and used in a glass furnace, should be classified under sub-heading 6902.20 as silica refractory bricks. The Tribunal rejected the classification under Chapter 70 CTA, as there was no evidence of the goods being glass articles obtained by pressing or molding. The appellants provided sufficient evidence to establish the goods as special type refractories, leading to the allowance of the appeal and classification under Heading 6902.20 CTA, 1975.