1997 (5) TMI 201 - AT - Customs

Summary

Issues: Classification of imported goods under Notification No. 155/86 for exemption

Analysis:
The case involved a dispute regarding the classification of imported Silicon Carbide Crucibles claimed to be parts of electric resistance furnaces under Notification No. 155/86. The respondents imported the crucibles and sought classification under CTH 8417.80, while the department assessed them under 6903.90. The Collector (Appeals) allowed the claim for exemption under the notification, which was challenged by the Revenue.

The Revenue contended that the crucibles should be classified under 6903.90, as they are not included in the parts of Heading 8514.90. The central issue was whether the crucibles qualified as parts of furnaces for exemption under Notification No. 155/86. The notification exempts parts required for setting up or manufacturing specified articles, subject to conditions such as certification by specified authorities and maintenance of usage records.

The Tribunal noted that the Collector's classification under 8514.10 was not pleaded by either side, but deemed it immaterial as the crucial matter was the crucibles' classification as furnace parts for exemption eligibility. The notification referenced Headings 8417 and 8414 for which parts are required, not the parts themselves. Therefore, the classification of the final product, not the parts, was relevant for exemption determination.

The certificates issued by specified authorities, as required by the notification, were not challenged by the Revenue. The Tribunal emphasized that the certificates must be accepted for exemption eligibility. The Revenue argued for classification under 6903.90, but the focus should be on whether the goods are parts of articles specified in the notification, which the literature and certificates confirmed for the crucibles being furnace parts.

The Revenue contended that the crucibles were consumables due to wear and tear, but the Tribunal held that periodic replacement does not negate their status as parts. Considering the literature and certificates confirming the crucibles' necessity for furnace manufacturing, the Tribunal concluded that the crucibles were indeed parts of furnaces, making them eligible for exemption under Notification No. 155/86.

In conclusion, the Tribunal upheld the Collector's order and dismissed the Revenue's appeal, affirming the classification of the crucibles as parts of furnaces for exemption under the notification.