1997 (9) TMI 273 - AT - Customs

Summary

Issues: Classification of Steam Irons under Customs Tariff Act, 1975.

The judgment pertains to an appeal filed by the Revenue challenging the classification of Steam Irons under the Customs Tariff Act. The Importers sought classification under sub-heading 8451.30 for exemption benefits, while the Collector of Customs (Appeals) classified them under Heading No. 85.16. The main contention was whether the irons, which derived heat from steam produced by electricity, should be classified as per the Harmonised System of Nomenclature (HSN) under Chapter Heading No. 85.16 or sub-heading No. 8451.30. The Revenue argued that electric steam smoothing irons fell under Chapter Heading No. 85.16, while the importers claimed they were presses for shirts, trousers, and jackets eligible for exemption under Notification No. 16/85-Cus.

The respondents argued that the goods were presses for specific garments and should be classified under sub-heading 8451.30, not as electric smoothing irons under sub-heading 8516.40. The Revenue, however, contended that the steam irons were general-purpose items correctly classified under sub-heading 8516.40. The dispute revolved around the description of the goods in the Bill of Entry and the literature provided, which referred to the goods as presses for garments and as electric steam irons for all applications, respectively.

The Tribunal analyzed the classification based on the Customs Tariff Act and the HSN Explanatory Notes. It highlighted that Chapter 84 covered machinery and mechanical apparatus, while Chapter 85 covered electrical goods. The emphasis was on the intended use and mechanical features, with Chapter 84 covering machinery for ironing textiles. The judgment clarified that electric smoothing irons, whether for domestic or industrial use, fell under Chapter Heading No. 85.16, distinct from ironing machines and presses covered under sub-heading 8451.30.

The Tribunal also considered Notification No. 16/85-Cus, which provided concessional duty rates for specified goods under Chapter 84 for the garment and hosiery industry. As the goods in question were classifiable under Chapter 85, they were not eligible for the exemption under this notification. Additionally, the Tribunal dismissed the argument based on a certificate obtained after the imports were made, upholding the Revenue's appeal and ordering accordingly.