1997 (4) TMI 219 - AT - Customs

Summary

Issues:
1. Classification of imported goods under different tariff headings.
2. Eligibility for refund and benefit under specific notifications.
3. Interpretation of "rate applicable" for determining duty rates.
4. Entitlement to exemption under Notification No. 155/86.

Classification of Imported Goods:
The appellants imported blades for a chopped strand cutter and claimed a refund based on different tariff classifications. The appellants argued that the goods should be classified under CTH 8441.10, 8479.89, or 8464.90, while the authorities assessed them under CTH 8208.90. The tribunal determined that the goods, along with the main machine, should be classified under 8479.89 as "machines and mechanical appliances having individual functions, not specified or included elsewhere." The tribunal rejected the argument that the main machine should be classified under 8464.90 for cold working glass, as the impugned goods were not cold glass.

Interpretation of "Rate Applicable" and Benefit under Notifications:
The tribunal considered the meaning of "rate applicable" in the context of duty rates for the goods. The appellants argued that the effective rate, not the tariff rate, should apply based on Notification No. 313/86 for auxiliary duty benefit. The tribunal agreed, citing the judgment in Vishal Electronics Pvt. Ltd. v. Union of India, and held that the effective rate of duty should be considered. The tribunal noted that if the goods are classified under 8479, they would be eligible for the exemption under Notification No. 313/86 for auxiliary duty.

Entitlement to Exemption under Notification No. 155/86:
The appellants made an alternative plea for exemption from basic duty under Notification No. 155/86. The tribunal decided that this claim could be made at the appellate stage but remanded the matter to the original authorities to examine the entitlement to benefit under the conditional notification. The appellants were directed to be heard before a decision was made on the eligibility for exemption under Notification No. 155/86.

Conclusion:
The tribunal disposed of all appeals by classifying the imported goods under 8479.89, interpreting "rate applicable" for duty rates, and remanding the matter regarding the entitlement to exemption under Notification No. 155/86 for further examination by the original authorities.