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Issues: Classification of goods described as 'Nipples' for feeding water to poultry birds under Heading 8436.99 or Tariff Heading 73.07.
In this case, the issue at hand pertains to the classification of goods labeled as 'Nipples,' which are intended to be used in providing water to poultry birds. The lower authority classified these nipples as parts of a drip system for watering poultry, falling under Heading 8436.99, with the benefit of Notification 49/95 extended to them. However, the revenue contended for the classification of these goods under Tariff Heading 73.07. The revenue argued that Tariff Heading 73.07 is broad enough to encompass the imported nipples, citing examples of tubes or pipe fittings made of iron or steel, including nipples, as per the Harmonized System of Nomenclature (HSN). The revenue also emphasized that parts of general use under Section XV, which includes Chapter 84, are excluded from assessment under this section. The appellant's representative countered this argument by asserting that Tariff Heading 73.07, as outlined in the HSN and Customs tariff, only covers items like tubes, pipe fittings, couplings, elbows, and sleeves. They contended that the nipples in question do not qualify as pipe fittings since they are inserted into a hole in the pipe to provide water outlets at intervals, rather than joining or extending pipes. The appellant's consultant highlighted the specific nature of pipe fittings as per the HSN, emphasizing that nipples should function as connectors between pipes, which the imported nipples do not fulfill. Upon considering both parties' submissions, the Tribunal referred to the definition of pipe fittings in technical terms, which includes nipples as a type of pipe fitting. The Tribunal also examined the definition of nipples, emphasizing their role as short tubing with threads used to couple pipes. However, upon analyzing the imported nipples and their usage, the Tribunal found that while the items were labeled as nipples, they did not align with the typical characteristics of pipe fittings as per the technical definition or examples provided under Tariff Heading 73.07. The imported nipples were observed to be screwed into holes in pipes to facilitate water dripping at intervals, rather than serving as traditional pipe connectors. Ultimately, the Tribunal upheld the lower authority's decision, which determined that the goods in question did not fall under Tariff Heading 73.07. The Tribunal noted that the item comprised metallic and plastic components, with the plastic portion being the part fixed into the pipe. Consequently, the Tribunal dismissed the appeal, concluding that the revenue's argument lacked merit, and the goods were not classifiable under Tariff Heading 73.07.
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