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Issues: Classification of imported goods described as "Alloy steel bars of Grade Thyrotherm 2344 EFS in forged, annealed and premachined condition" under tariff sub-headings 7228.40 and 7228.60.
Classification under Tariff Sub-Heading 7228.40: The question involved in the appeal was the classification of the imported goods described as "Alloy steel bars of Grade Thyrotherm 2344 EFS in forged, annealed and premachined condition." The lower authorities classified the product under tariff sub-heading 7228.40, which covers "other bars and rods, not further worked than forged." The appellant argued that this sub-heading only applies to bars that are solely forged and not further worked. The appellant pointed out that the goods were not only forged but also peeled, as indicated in the test reports accompanying the invoices. Interpretation of Explanatory Notes: The appellant drew attention to the Explanatory Notes under Chapter 72 and Heading 72.28, emphasizing that subsequent manufacturing and finishing operations, such as peeling, could change the classification of the goods. The appellant argued that peeling is a machining process that alters the classification, unlike annealing, which only eliminates oxidation scale and crust. Therefore, the appellant contended that the goods should be classified under tariff sub-heading 7228.60, which covers "other bars and rods." Argument Based on Invoice Description: The JDR representing the respondent contended that the description in the invoice, stating the goods as forged, annealed, and premachined, should be given more weight than the test reports. The JDR argued that the test reports were internal documents of the manufacturer/supplier and might not accurately reflect the nature of the goods. The JDR highlighted that the lower authorities were not informed about the peeling aspect of the goods, making it inappropriate to consider it at the appellate stage. Judgment and Decision: After considering both parties' arguments, the Tribunal agreed with the respondent's representative that the description in the invoice and bill of entry should be considered more reliable than the test reports. The Tribunal noted that the issue of peeling was not raised before the lower authorities and, being a question of fact, could not be introduced at the appellate stage. Therefore, the Tribunal upheld the lower authority's classification under sub-heading 7228.40, as the imported goods were determined to be only forged and not further worked. Consequently, the appeal was dismissed. This detailed analysis of the judgment highlights the key arguments presented by both parties, the interpretation of relevant legal provisions, and the Tribunal's decision based on the facts and legal principles involved in the classification of the imported goods under specific tariff sub-headings.
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