1998 (10) TMI 277 - AT - Customs

Summary

Issues Involved:
Classification of cover sheets and absorber mats for solar energy equipment.

Cover Sheets:
The main issue in this appeal is the classification of cover sheets and absorber mats. The appellants claim that these goods should be assessed as parts of solar energy equipment under Customs Tariff Heading 84.17(1), while the Revenue argues for classification under Tariff Heading 39.01/06 for cover sheets and 59.01/15 for absorber mats. The cover sheet was tested and found to be a transparent sheet composed of polyester synthetic resin reinforced with glass fiber. The absorber mat, on the other hand, was tested to be a thick soft pad with specific layers and composition.

The learned Advocate for the appellants argues that the disputed products are integral parts of the sun-dryer system, specifically designed for maximum efficiency. He emphasizes the unique design and purpose of these products within the solar energy equipment. The Advocate challenges the Revenue's classification based on the predominant material and lack of evidence to prove the goods are known as plastic sheets in trade. He cites relevant case laws to support his arguments regarding classification and burden of proof.

On the other hand, the JDR for the Respondent contests the classification, relying on Chapter Note 3(d) of Chapter 39 for cover sheets and argues against the application of Chapter 1(ij) to parts of machines. The JDR maintains that the onus of evidence is not on the Revenue due to the direct application of Chapter note 3(d) for cover sheets and asserts that the absorber mat falls under heading 59.01/15 based on the test report.

Judgment:
After considering the arguments from both sides and reviewing the Product Information Guide and test reports, the Tribunal concludes that the cover sheets and absorber mats are indeed parts of solar panels for the sun-dryer system. The Tribunal rejects the Revenue's contention regarding the application of Chapter Note 1(ij) only to complete machines and mechanical appliances, stating that parts are also assessed with the machine. The Tribunal references relevant case laws supporting the classification of similar parts as integral components of machinery.

Regarding the classification of the absorber mat, the Tribunal affirms that it is a crucial part of the sun-dryer system and should be classified under Heading 84.17(1). The Tribunal emphasizes the unique design and purpose of the absorber mat within the solar energy equipment. Consequently, the impugned order is set aside, and the appeal succeeds on the merits of classification, without the need to address the issue of limitation for duty demand.