1999 (1) TMI 142 - AT - Customs

Summary

Issues: Classification of imported scrap tungsten defective filaments under Customs Tariff

Classification of Goods:
The main issue in the appeal filed by M/s. Rama Trading Co. was the classification of the imported scrap tungsten defective filaments. The question was whether these filaments should be classified as waste and scrap under sub-heading No. 8101.91 of the Customs Tariff, as argued by the importers, or under sub-heading No. 8101.99 of the Customs Tariff, as decided by the Revenue.

Arguments and Analysis:
The importers, a Trading Company, imported the consignment containing tungsten filaments for use in electric lamps. The importers claimed that the filaments were usable after further reprocessing and cutting, intended for sale to manufacturers of miniature bulbs. The appellants sought classification under sub-heading No. 8101.91, which covers waste and scrap. The Revenue argued that the goods were more akin to filaments, even if not of standard sizes, and not covered under sub-heading No. 8101.91, which largely pertains to unwrought tungsten.

Definition of Waste and Scrap:
The definition of waste and scrap under Section Note 6 of Section XV of the Customs Tariff was crucial in determining the classification. Waste and scrap are described as metal waste and scrap from the manufacture or mechanical working of metals, not usable due to breakage, cutting up, wear, tear, or any other reason.

Decision and Ruling:
After considering the submissions and facts on record, the Tribunal found that the defective filaments were usable after segregation and could not be classified as waste and scrap based on the tariff definition. The Commissioner of Customs (Appeals) had set aside the order of confiscation and penalty, confirming the customs duty demands. The Tribunal upheld the Commissioner's decision, stating that there was no merit in the appeal and rejected it accordingly.

In conclusion, the Tribunal determined that the imported scrap tungsten defective filaments, although not standard-sized, were usable after segregation and thus did not fall under the classification of waste and scrap as per the Customs Tariff. The decision was based on the nature of the goods imported and the specific circumstances of the case, leading to the rejection of the appeal.