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Issues: Classification of imported items as 'Parts of Heat Exchangers' under Heading 84.17(1) and benefit of exemption under Notification No. 35/79-Cus vs. classification as 'Forgings' under Tariff Heading 73.33/40.
In this case, the appeal stemmed from the rejection of the appellants' claim to classify the imported items as 'Parts of Heat Exchangers' under Heading 84.17(1) and to avail the exemption under Notification No. 35/79-Cus. The imported items were classified as 'Forgings' under Tariff Heading 73.33/40. The initial claim was dismissed due to lack of substantiation. The Collector (Appeals) remanded the matter for reconsideration, where the Assistant Collector found discrepancies between the details in the invoice, drawings, and the actual goods. The appellants failed to prove that the alloy steel forgings had transformed into parts. The Collector (Appeals) noted the absence of crucial documentation, such as the letter from DGTD and the timing of the certificate issuance. The appellants' declaration to DGTD indicated the items were "proposed to be imported," despite already being imported earlier. The forgings mentioned in the invoice did not align with the list of items provided. Reference was made to the case of BHEL v. Collector of Customs for support. Regarding the arguments presented, the appellants submitted an affidavit stating that the imported items underwent a complete forging process in the supplier's factory and were imported in a finished condition for use in R.G. Boiler of Chemical Machinery. The Departmental Representative reiterated the department's stance, highlighting discrepancies in the DGTD certificate and the lack of part numbers mentioned. The Supreme Court's judgment in All India Glass Manufacturers' Federation v. Collector of Customs was cited, emphasizing the importer's obligation to substantiate their claims. Upon careful consideration of the evidence, the Appellate Tribunal found that the description in the Bill of Entry and Invoice indicated alloy steel forgings. Despite the appellants' production of drawings to establish correlation, this was not accepted by the lower authorities. The affidavit provided by the General Manager (Imports) lacked detailed information on the items and their specific usage in heat exchangers. The degree of proof required to link the imported goods to the finished product, claimed to be used without further processing, was deemed insufficient. Consequently, the Tribunal upheld the Collector's decision, emphasizing the necessity for a high degree of proof in such cases. In conclusion, the appeal was rejected, and the impugned order was upheld based on the lack of substantial evidence to support the appellants' claim regarding the classification and usage of the imported items.
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