9911796707
|
Home
Issues Involved
1. Classification of imported goods under the Customs Tariff Act, 1975. 2. Interpretation of Section Note 2(b) to Section XV and its applicability. 3. Determination of whether the imported goods are "parts of general use" or specific parts of a pressure gauge. 4. Applicability of HSN Explanatory Notes and previous Tribunal decisions. Detailed Analysis 1. Classification of Imported Goods The primary issue revolves around the classification of "Hair Spring Stainless steel spring wire round with collet" imported by the appellants. The appellants claimed classification under sub-heading 9026.90 of the Customs Tariff Act, 1975, arguing that the goods are specially designed parts of pressure gauges. However, the Assistant Collector classified the goods under sub-heading 7320.90, holding that all types of springs, except those for clocks and watches, fall under Chapter 73. This classification was confirmed by the lower Appellate authority, leading to the present appeal. 2. Interpretation of Section Note 2(b) to Section XV The appellants contended that the imported goods are not just springs but composite items (springs with collet) and should be classified as parts of pressure gauges under sub-heading 9026.90. The Assistant Collector and the lower Appellate authority held that the identity of the goods as springs was not changed by the addition of a collet, as the collet's function was merely to retain the position of the pointer in the pressure gauge. This interpretation was based on the HSN Explanatory Notes to Section XV, which state that springs classifiable under sub-heading 73.20/21 may be fitted with U-bolts or other fittings for assembly or attachment. 3. Determination of "Parts of General Use" vs. Specific Parts of Pressure Gauge The appellants argued that the imported hair springs are integral parts of pressure gauges and cannot be equated with springs of general use. However, previous Tribunal decisions, such as in the case of Kirloskor Pneumatic Company v. Collector of Customs, Bombay, had classified similar springs under sub-heading 7320.90. These decisions emphasized that identifiable parts of machinery, even if specially designed, fall under Chapter 73 unless they are clock or watch springs. The Vice President, in his separate judgment, observed that the basic issue is whether the imported article is a spring covered by Section Note 2 of Section XV or a component part of a pressure gauge classifiable under Heading 90.26. He noted that the technical literature described the goods as "component parts for pressure and vacuum gauges" and emphasized that the article is a hairspring assembly fitted as a component to the gauge movement. He argued that the presence of the collet does not change the identity of the spring and that the goods should be classified under Heading 9026.90. 4. Applicability of HSN Explanatory Notes and Previous Tribunal Decisions The Judicial Member and the Vice President had differing views on the applicability of the HSN Explanatory Notes and previous Tribunal decisions. The Judicial Member upheld the classification under sub-heading 7320.90, relying on previous decisions and the HSN Explanatory Notes. The Vice President, however, argued that the exclusion clause in the HSN Notes supports the classification under Heading 9026.90, as the goods are identifiable parts of measuring instruments. Majority Opinion The third Member, after examining the differing views, sided with the Judicial Member. He concluded that the presence of the collet does not convert the spring into an assembly or sub-assembly and that the goods remain classified under sub-heading 7320.90. He emphasized that Note 2 of Section XV clarifies that all springs, except clock or watch springs, are parts of general use and should be classified under Heading 73.20. Conclusion In view of the majority opinion, the impugned order classifying the goods under sub-heading 7320.90 is upheld, and the appeal is rejected. The classification of the imported "Hair Spring Stainless steel spring wire round with collet" remains under sub-heading 7320.90, as the goods are considered springs of general use and not specific parts of pressure gauges.
|
