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Issues: Classification of imported goods under CTH 8518/27 or Heading 85.11(1); Evidence required for classification under specific sub-heading 8518/27(3) for electrical apparatus.
In this case, the appellants imported goods claimed to be components for the manufacture of induction furnaces, classified under CTH 8518/27(1) CTA 75. They sought reclassification under Heading 85.11(1) CTA 75, asserting that the goods were parts of induction furnaces. However, their claims were rejected by the Collector of Customs and Collector (Appeals) due to lack of evidence that the goods were designed for use in circuits of 400 volts or more. The appellants argued that the goods were specifically designed for use with induction melting furnaces and should be classified under 8511(1) or alternatively under 8518/27(3) as parts of control panels, which is specific to the imported goods. The Tribunal analyzed the classification issue and noted that CTH 8518/27 covers electrical apparatus for making and protecting electrical circuits, which aligns with the nature of the imported goods. Consequently, the Tribunal ruled out classification under the general heading of parts of induction furnaces and held that the goods should be classified under CTH 85.18/27. However, the Tribunal observed that the more appropriate sub-heading would be 8518/27(3) for electrical apparatus for making and protecting electrical circuits, subject to the condition that the articles are designed for use in circuits of 400 volts or more, 20 AMPS or more, or with motors of 1.5 kilowatts. Regarding the evidence required for classification under 8518/27(3), the Tribunal found that the literature and documents submitted by the appellants did not conclusively prove that the imported goods were designed for use in circuits of 400 volts or more. The appellants argued that since induction melting furnaces operate at 450 volts, the goods should be presumed to meet the voltage requirement. However, the Tribunal emphasized the need for verifiable evidence to support this claim. Consequently, the Tribunal set aside the previous order and remanded the matter to the Assistant Commissioner of Customs for a fresh decision on the classification under sub-heading 8518/27(3). The appellants were given the opportunity to present additional evidence to support their classification claim, and the Assistant Commissioner was directed to ensure a fair decision-making process in accordance with the Principle of Natural Justice.
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