1997 (8) TMI 299 - AT - Customs

Summary

Issues:
- Whether the imported Seamless Cold Drawn Carbon Steel Tubes qualify for the benefit of Notification No. 155/86-Cus.
- Whether the Tubes imported are identifiable parts of Heat Exchangers.
- Whether the appellants are entitled to a refund claim.

Analysis:

The appeal was filed against an order-in-appeal by the Collector of Customs regarding the assessment of Seamless Cold Drawn Carbon Steel Tubes under Heading No. 7304.39 without the benefit of Notification No. 155/86-Cus. The appellants claimed that the Tubes were components of Heat Exchangers and should be eligible for the reduced rate of duty under the notification. The appellants argued that the slight difference in length between the Tubes and the Heat Exchanger was due to welding margins. They also submitted an end-use certificate and relied on a previous Tribunal decision to support their claim.

The Respondent contended that the Tubes were of general use and not specifically declared as part of Heat Exchangers. The Respondent requested the appeal to be dismissed.

The Tribunal noted that the appellants had declared the Tubes as components of Heat Exchangers in the bill of entry and held industrial licenses for Heat Exchanger manufacture. The report of the examiner and the import license also confirmed the Tubes' use in Heat Exchangers. Additionally, an independent engineer's certificate verified the Tubes' use without further fabrication. Citing a previous Tribunal decision, the Tribunal concluded that the Tubes were of special quality and specification for Heat Exchangers assembly.

Ultimately, the Tribunal found that the Tubes were indeed parts of Heat Exchangers and eligible for the benefit of Notification No. 155/86-Cus., which exempts parts for assembly. The impugned order was set aside, and the appeal was allowed, granting the appellants consequential benefits subject to unjust enrichment provisions as per a Supreme Court decision.

In conclusion, the Tribunal ruled in favor of the appellants, recognizing the Tubes as identifiable parts of Heat Exchangers and entitling them to the benefits under the relevant notification, along with potential consequential benefits, subject to unjust enrichment principles.