2002 (9) TMI 349 - AT - Customs

Summary

Issues:
1. Classification of goods made of 99% aluminum for the manufacture of variable capacitors.
2. Eligibility for the benefit of Customs Notification 88/94.
3. Interpretation of Chapter notes and Tariff headings for classification.

Detailed Analysis:
1. The judgment concerns the classification of goods made of 99% aluminum, described as components for variable capacitors, under Customs Tariff Headings. The appellant claimed the benefit of a concessional rate of duty based on a Certificate recommending eligibility under Customs Notification 88/94. However, the Department proposed a different classification under Heading 8532.90, leading to a demand for duty. The lower authorities confirmed this classification, prompting the appeal.

2. The lower authority inspected samples and concluded that the goods did not fit the definition of plates, sheets, or strips under Heading 7606.91 but were parts/components with specific shapes and functions suitable for electrical capacitors. The Commissioner (Appeals) determined that the benefit of the Notification applied only to goods classifiable under Chapter 76, not Heading 8532.90. The absence of evidence challenging the lower authority's findings supported the classification under 8532.90 as parts of electrical capacitors, rendering them ineligible for the Notification's benefits.

3. The judgment analyzed Chapter notes and Tariff provisions to determine classification. It noted that even if the products were flat-shaped and not rectangular or square, assuming the character of articles from other headings would disqualify them from classification under Heading 7606 or 7607. The goods, having specific part numbers and serving a distinct function as capacitor parts, were deemed to have assumed the character of capacitor components. Consequently, the goods were correctly classified under Heading 8532.90, warranting duty payment without the benefit of Notification 88/94.

In conclusion, the appeal was dismissed as the goods were found properly classified under Heading 8532.90 as parts of electrical capacitors, thus ineligible for the benefits of Customs Notification 88/94. The judgment emphasized the importance of specific shapes and functions in determining classification under the Customs Tariff, highlighting the significance of evidence and compliance with Chapter notes for accurate classification of goods.