1995 (12) TMI 194 - AT - Customs

Summary

Issues: Classification of imported goods under Tariff Headings 3823.90, 25.03, or 28.02

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue at hand is the classification of imported goods, specifically "Oil treated Sulphur," under different Tariff Headings. The Department claimed classification under Tariff Heading 3823.90, while the party argued for classification under Tariff Headings 25.03 or 28.02. The goods were initially assessed under Tariff Heading 3823.90 as residual products, but the party sought reassessment under Tariff Heading 25.03 or 28.02, contending that the goods were specially meant for Sulphur. The Assistant Collector rejected the party's claim, stating that the goods were tailor-made for the rubber industry and should be classified under Tariff Heading 3823.90. The Collector (Appeals) upheld the party's classification under Tariff Heading 25.03, leading to the department's appeal.

The relevant Tariff entries for consideration are 25.03, 28.02, and 3823.90, each specifying different types of Sulphur products. The dispute revolves around whether the imported goods should be classified as per the Department's claim under Tariff Heading 3823.90 or the party's assertion under Tariff Heading 25.03 or 28.02. The classification hinges on the nature and intended use of the goods in question.

The Department argued that the goods should not be classified under Tariff Heading 25.03 based on the purity percentage and the criteria outlined in Chapter Note 1 to Chapter 25 of the Harmonized System of Nomenclature (HSN). They contended that since the goods were not in a crude form and were obtained through mixing processes, they should be classified as a residual entry under Chapter 38. The Tribunal considered these arguments, along with the records, and analyzed the purity content of the goods in comparison to sublimed and precipitated sulphur under Tariff Heading 28.02. Given that the oil-treated sulphur had a 20% oil content, it did not meet the purity standards for sublimed or precipitated sulphur under Tariff Heading 28.02. Consequently, the Tribunal agreed with the Collector (Appeals) that the goods fell under Tariff Heading 25.03, which covers sulphur of all kinds other than specified types, thereby upholding the classification decision and dismissing the department's appeal.