1997 (8) TMI 238 - AT - Customs

Summary

Issues: Revenue's appeal against Order-in-Appeal dated 12-1-1991 regarding classification of load cells under Tariff Heading No. 90.31 and eligibility for exemption from auxiliary duty under Notification No. 105/89-Cus.

Analysis:
The Appellate Tribunal CEGAT, New Delhi addressed the issue raised by the Revenue in their appeals against the Order-in-Appeal dated 12-1-1991. The Collector of Customs (Appeals) had classified load cells under Tariff Heading No. 90.31 and granted exemption from auxiliary duty under Notification No. 105/89-Cus., dated 1-3-1989. The Revenue contended that load cells are not related to measuring or checking parameters and thus not eligible for the said exemption. The Tribunal noted that load cells fall under Tariff Heading No. 90.31, which includes machines, appliances, instruments, or apparatus as per Explanation 6(b) of the notification. The Tribunal upheld the classification and exemption, stating that load cells are entitled to the benefit of the said notification.

Moving forward, the Tribunal highlighted that there was no dispute regarding the classification of the load cells under Tariff Heading No. 90.31. The Notification No. 105/89-Cus., dated 1-3-1989 specifically exempts goods falling under Chapter Heading No. 90.31 from auxiliary duty. Explanation 6(b) clarifies that Heading No. 90.31 encompasses machines, appliances, instruments, or apparatus. Since the load cells in question are classified under Tariff Heading 90.31, they qualify for the exemption under Notification No. 105/89-Cus., dated 1-3-1989. Consequently, the Tribunal found no flaw in the Order-in-Appeal and dismissed the appeals filed by the Revenue, affirming the classification and exemption for the load cells.

In conclusion, the Appellate Tribunal CEGAT, New Delhi resolved the issue raised by the Revenue concerning the classification of load cells under Tariff Heading No. 90.31 and their eligibility for exemption from auxiliary duty under Notification No. 105/89-Cus., dated 1-3-1989. The Tribunal upheld the classification of load cells under Heading 90.31, emphasizing that they fall within the scope of machines, appliances, instruments, or apparatus as per the notification's explanation. Consequently, the Tribunal dismissed the Revenue's appeals, confirming the entitlement of the load cells to the exemption provided under the said notification.