1997 (11) TMI 205 - AT - Customs

Summary

Issues: Classification of imported components for 25 K.V. Vacuum Circuit Breaker under Customs Tariff Headings 85.35, 85.36, and 85.38 for duty exemption eligibility.

The judgment pertains to an appeal against the rejection of a claim for assessment under Heading 8538.90 with specific notifications for imported components of a 25 K.V. Vacuum Circuit Breaker. The dispute arose as the authorities contended that the goods should be classified under 85.35 instead of 85.36 for duty exemption eligibility. The appellant argued that the goods were covered under the notification description, citing the case of Frick India Ltd. v. U.O.I. for support.

The Revenue, on the other hand, argued that while item 85.38 covers parts of various classifications, the exemption in question is only applicable to goods classifiable under CTH 85.36. The tribunal examined the relevant portion of the notification, which exempted Automatic Circuit Breakers for circuits of 400 volts and above, and noted that the imported goods were components of a 25 K.V. Vacuum Circuit Breaker, indicating a circuit exceeding 1,000 volts, falling under CTH 85.35, not 85.36.

The tribunal emphasized that the exemption applied to parts of circuit breakers for circuits of 400 volts and above falling under Heading 85.36. The judgment clarified that parts by themselves are classified under Heading 85.38 but must be suitable for use with goods under Heading 85.36 to qualify for the exemption. The tribunal distinguished the case of Frick India Ltd. v. U.O.I., stating that the specific classification under Heading 85.36 was crucial for exemption eligibility.

Further, the tribunal analyzed the scope of the notification and emphasized that the mention of CTH 85.36 in the notification indicated the intended exemption for goods within that classification range. The judgment highlighted the distinction between circuit breakers for circuits exceeding 1,000 volts under CTH 85.35 and those for circuits not exceeding 1,000 volts under CTH 85.36, reinforcing the ineligibility of the imported goods for the claimed exemption.

Ultimately, the tribunal upheld the lower authorities' decision, rejecting the appeal based on the classification of the imported components for the 25 K.V. Vacuum Circuit Breaker under CTH 85.35, rendering them ineligible for the duty exemption specified under CTH 85.36.