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Issues: Classification of imported goods under Customs Tariff, eligibility for benefit of Notification 64/95 and 84/94, applicability of Section Note 2 to Section XV of the Tariff, determination of items as 'parts of general use', reliance on drawings and certificates for classification.
The judgment by the Appellate Tribunal CEGAT, Bangalore involved a case where the appellants imported goods declared as 'RIVETS & C-WASHERS' and 'Rivets' for the last two decades, claiming them to be high precision items not of commercial standard, seeking classification under 8538.90 of Customs Tariff for duty concession under Notifications 64/95 and 84/94. The original authority classified the items as 'parts of general use' under Chapter 73, leading to a differential duty demand. The Commissioner (Appeals) upheld this decision, emphasizing the items' general use nature and ineligibility for duty exemption. The appellants, absent during the hearing, requested a decision based on appeal materials. The Tribunal noted the absence of material specifying the items' composition and the lack of findings on whether they were 'parts of general use'. The Tribunal criticized the Commissioner's reliance on personal judgment regarding the items' material and classification, highlighting the need for factual basis and adherence to law. The Tribunal found fault with the lower authorities for not determining the material composition of the imported items and for not establishing whether they qualified as 'parts of general use' under Section Note 2 to Section XV of the Tariff. The absence of findings on these crucial aspects led the Tribunal to set aside the classification under Chapter 73 and the denial of duty concession. Additionally, the Tribunal criticized the Commissioner for relying on personal opinion rather than factual evidence, especially regarding the items being parts of electrical switches. The Tribunal emphasized the need for a proper determination of the items' classification based on factual evidence, such as drawings and certificates submitted by the importers, and remanded the matter to the Original Authority for a redetermination following the principles of natural justice. In conclusion, the Tribunal's judgment highlighted the importance of factual determinations and adherence to legal provisions in classifying imported goods under the Customs Tariff. The case underscored the necessity of establishing the items' material composition and their classification as 'parts of general use' before denying duty concessions. The Tribunal's decision to remand the matter for a proper redetermination emphasized the significance of following due process and relying on factual evidence rather than personal opinions in such matters.
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