1998 (7) TMI 213 - AT - Customs

Summary

Issues:
Interpretation of Tribunal's order regarding classification of imported items.

Analysis:
The appeal before the Appellate Tribunal involved the interpretation of an earlier order passed by the Tribunal in 1987. The dispute centered around the classification of imported items, specifically a computer, software package, Tool Gamma, Density Caliper, and Neutron Source. The Sr. Advocate for the appellants argued that the lower authorities had not correctly assessed the items based on their functions. The appellants sought classification under specific headings, citing the nature and purpose of each item. The Tribunal, in its 1987 order, directed the appellants to provide detailed accounts of the functions of each item for proper assessment.

The Collector of Customs (Appeals) in his judgment classified only the aforementioned five items based on the Tribunal's 1987 order, disregarding the classification of 16 additional items disputed by the appellants. The Collector held that the appellants could not raise new issues not previously raised before the Tribunal. The Collector classified the five items under specific tariff headings, rejecting the classification under geophysical surveying equipment.

The appellants challenged the Collector's classification of Density Caliper and Neutron Source, arguing that it was incorrect. Upon review, the Appellate Tribunal found the Collector's classification of these two items justified based on the discussion provided. However, the Tribunal agreed with the appellants' contention that the Collector had taken a narrow view of the 1987 remand order. The Tribunal emphasized that all items should be classified based on their functions, as directed in the Tribunal's 1987 order. Therefore, the Tribunal directed the Collector to classify the remaining items in accordance with the Tribunal's directions, allowing the appeal in part by remand.

In conclusion, the Appellate Tribunal's judgment clarified the classification of imported items based on their functions as directed in the previous Tribunal order. The Tribunal emphasized the importance of providing detailed information on the functions of each item for accurate assessment. The judgment highlighted the need for a comprehensive classification process, ensuring that all items are classified appropriately based on their intended use.