1996 (6) TMI 205 - AT - Customs

Summary

Issues:
Classification of imported product 'Magnetic Buttons' under Tariff Heading 96.06 and eligibility for benefit under Notification No. 267/89 as amended by Notification No. 5/91.

Detailed Analysis:

1. Classification Issue:
The main issue in this appeal was the classification of the imported product 'Magnetic Buttons' under Tariff Heading 96.06. The appellant argued that prior to the amending Notification No. 5/91, the goods were classified under this heading, and the benefit of Notification No. 267/89 was extended to 'Magnetic Buttons'. The appellant contended that the change in classification to Heading 83.08 was incorrect as the product should be considered as 'Buttons' or 'Snap Fasteners' falling under 96.06. The appellant supported this argument with references to a manufacturer's catalogue and customs bills of entry.

2. Benefit under Notification No. 5/91:
The appellant claimed entitlement to the benefit under Notification No. 5/91, despite the specific omission of 'Magnetic Buttons' in Serial No. 3 of the table. The appellant argued that they should be covered under Serial No. 4, which exempts 'Buttons' and 'Fasteners' under Heading 96.06. The appellant contended that the deletion of 'Magnetic Buttons' in Serial No. 3 did not preclude them from availing the benefit under the notification, as 'Buttons' of all types were covered under Serial No. 4.

3. Revenue's Argument:
The Revenue opposed the appellant's contentions, emphasizing that the specific omission of 'Magnetic Buttons' in Notification No. 5/91 indicated the intention to deny exemption to these goods. The Revenue also argued that the appellant would not be entitled to the benefit under Serial No. 4 as 'Magnetic Buttons' were not specifically mentioned in the later notifications.

4. Judgment and Analysis:
The Tribunal carefully considered the arguments from both sides and noted the historical classification of the goods under Tariff Heading 96.06. The Tribunal found that 'Buttons' were explicitly mentioned in Tariff Heading 96.06, and the goods were imported as 'Magnetic Buttons'. Therefore, the Tribunal concluded that the goods should be classified under Tariff Heading 96.06.

5. Entitlement to Exemption:
Once the classification issue was settled, the Tribunal addressed the entitlement to the benefit under Notification No. 5/91. Despite the omission of 'Magnetic Buttons' in Serial No. 3, the Tribunal agreed with the appellant that they could be covered under Serial No. 4, which included all types of 'Buttons'. The Tribunal interpreted the law as it existed and found that the appellants were entitled to the benefit of the notification. The Tribunal also noted that a similar view had been taken by another Collector (Appeals) in a previous case.

6. Conclusion:
In conclusion, the Tribunal allowed the appeal and granted consequential relief to the appellants, holding that the goods should be classified under Tariff Heading 96.06 and the benefit of Notification No. 5/91 should be extended to them based on the interpretation of the relevant provisions and notifications.

This comprehensive analysis of the judgment highlights the key arguments, findings, and conclusions related to the classification and benefit entitlement of the imported product 'Magnetic Buttons' under the relevant tariff headings and notifications.