1997 (7) TMI 449 - AT - Customs

Summary

Issues: Classification of imported goods under Tariff Headings 7326.90, 7207.20, and 73.06; Rejection of refund claim; Reassessment of goods; Finality of assessment under Customs Act.

Classification under Tariff Headings 7326.90, 7207.20, and 73.06:
The appellant imported goods described as "fluted wires" and initially classified them under Tariff sub-heading 7326.90, which was accepted by the Customs authority. However, the appellant later claimed a refund, arguing that the goods should have been classified under Tariff Heading 7207.20. The original authority rejected the refund claim, stating that the goods did not match the description under Tariff Heading 72.07. On appeal, the Collector of Customs classified the goods under heading 73.06, which led to a higher duty rate. The Tribunal noted that the goods were fluted and hollow inside, justifying classification under Chapter 73.06, and accepted the contention that the goods should be assessed under Tariff Heading 7216.90, granting the refund claim.

Rejection of Refund Claim:
The original authority rejected the refund claim on the grounds that the goods did not match the description under the claimed Tariff Heading and that the appellant did not protest against the initial assessment. However, the Tribunal found that the goods were regularly imported as fluted wires, supported by past bills of entry and invoices. The Tribunal accepted the argument that if the character of the goods is established from the documents and the refund claim is within time, the classification under Tariff Heading 7216.90 should be accepted, leading to reassessment by the Customs authority.

Reassessment of Goods:
The Tribunal held that the classification of the goods as fluted wires under Tariff Heading 7216.90 should be accepted based on past import records and the acceptance of the same classification by Customs authorities in previous instances. The Tribunal directed the Customs authority to reassess the goods under Tariff Heading 7216.90 and provide any consequential relief to the appellants.

Finality of Assessment under Customs Act:
The Tribunal acknowledged the argument that once goods are assessed and cleared under the Customs Act, they acquire finality unless reagitated. However, in this case, the Tribunal found that the regular importation of the goods under the same description, along with supporting documents, justified a reassessment of the goods under a different Tariff Heading, despite the goods being out of Customs control. The Tribunal emphasized that the character of the goods, as established from documents, should be considered for reassessment and granting of refunds.