1997 (2) TMI 299 - AT - Customs

Summary

Issues: Classification of imported goods under the Customs Tariff Act.

Analysis:
The case involved the classification of imported Ferrite Cores under the Customs Tariff Act. The respondent claimed classification under Heading 85.05, while the Asstt. Commissioner classified the goods under sub-heading 8529.00 based on a Tribunal decision. The Commissioner (Appeals) later classified the goods under sub-heading 8504.90 as parts of transformers, which was challenged by the appellant.

The appellant contended that the Asstt. Commissioner's classification was based on a Tribunal decision and was appropriate since the Ferrite Cores find use in apparatus like television covered by specific headings. On the other hand, the respondent argued that the Tribunal decision cited was under a different tariff act and that specific heading should be preferred for classification as per the rules of interpretation of the tariff.

The Tribunal analyzed the submissions and noted that the previous decision by the Tribunal in the case of Cosmo Ferrites did not consider classification under Heading 85.04 for parts of transformers. It was observed that the Ferrite Cores were used in the manufacture of transformers and coils, not directly in apparatus like television or radio. Therefore, the Tribunal concluded that sub-heading 8504.90, covering parts of transformers, was the most specific heading for the Ferrite Cores.

Additionally, the Tribunal applied sub-rule 3(a) of the Rules for Interpretation of the Tariff, which states that the heading providing the most specific description should be preferred. Considering this rule and Section Note 2(a) of Section XVI of the C.T.A., which mandates classification of parts under their respective headings, the Tribunal upheld the classification under sub-heading 8504.90 for the Ferrite Cores.

In conclusion, the Tribunal found no reason to interfere with the Commissioner (Appeals) order and rejected the appeal, affirming the classification of the Ferrite Cores under sub-heading 8504.90 as parts of transformers under the Customs Tariff Act.