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Issues: Classification of imported goods as parts of a photocopier machine or as aluminum tubes under specific CTH.
In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the classification of imported goods - aluminum tubes cut to specific size and shape with mirror finish and grooves on the edges. The dispute arose regarding whether these goods should be assessed under CTH 7608.10 as aluminum tubes or under CTH 9009.90 as parts of a photocopier machine. The Assistant Collector classified the goods as parts of a photocopier machine, while the Collector (Appeals) determined that the goods had not acquired the essential character of finished goods and thus were classified as aluminum tubes. The Tribunal examined the processes the imported aluminum tubes needed to undergo after importation, such as finish turning, coating of selenium under vacuum conditions, and fitting of end-aluminum flanges. The key contention was that the essential character of the goods as parts of a photocopying machine was only acquired after selenium coating. The Tribunal referenced Xeography and Related Processes to highlight the significance of selenium coating in imparting photo receptor characteristics to aluminum tubes for use in photocopying machinery. The Tribunal analyzed Interpretation Rule 2(a), emphasizing that an incomplete or unfinished article should be classified based on whether it has acquired the essential character of the complete or finished article. Referring to a previous case, the Tribunal stressed the importance of the processes a product undergoes in determining its identity. It cited an example involving the transformation of glass sheets into glass mirrors to illustrate the significance of processing in altering a product's essential character. Based on the analysis of the processes and the significance of selenium coating in imparting essential characteristics for photocopying machinery, the Tribunal concluded that the aluminum tubes, in their imported form, did not possess the essential character of finished products. Drawing parallels to a previous case involving motor cycle parts, the Tribunal held that the goods could not be identified as parts of a photocopying machine until they underwent selenium coating. Therefore, the Tribunal rejected the Revenue Appeal and upheld the classification of the goods as aluminum tubes, not parts of a photocopier machine.
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