2000 (3) TMI 501 - AT - Customs

Summary

Issues:
Classification of imported parts for Web Fed Offset Rotary Printing Machines under Customs Tariff Act, 1975 and relevant notifications.

Analysis:
The appellants imported parts for Web Fed Offset Rotary Printing Machines and claimed classification under sub-heading 8443.11 of the Customs Tariff Act, 1975. They argued for a concessional rate of duty based on various notifications. The lower authorities, however, held that the goods attracted a higher basic Customs duty rate. The main issue revolves around the correct classification and applicable duty rate for the imported parts.

Notification No. 155/86 grants a concessional rate of duty for parts required for the manufacture of goods falling under specific headings. The rate applicable to parts is determined by the rate applicable to the complete imported article reduced by 10% ad valorem. The explanation to the notification specifies the notifications to be considered while calculating the effective duty rate on imported parts.

The importer contended that Notification 114/80 should be considered for reducing the duty rate on parts. However, the Tribunal disagreed, emphasizing that the explanation to Notification 155/86 only mentions specific notifications to be considered for determining the duty rate on imported parts. As Notification 114/80 was not included in this list, the lower authorities were correct in applying a higher duty rate on the imported parts.

The Tribunal distinguished the case laws cited by the appellants, highlighting that those cases involved different interpretations of notifications without specific mention of particular notifications. In contrast, the present case involves a clear explanation in Notification 155/86, specifying only certain notifications to be considered for calculating the duty rate on imported parts.

Ultimately, the Tribunal upheld the lower authorities' decision and dismissed the appeal, affirming the higher duty rate on the imported parts based on the specific notifications mentioned in Notification 155/86.