2015 (4) TMI 451 - AT - Customs

Benefit of Notification No. 21/2002-Cus dated 1.3.2002 (Sr. No. 244) - denial on the ground that the goods imported were not connectors - contention of the appellants that the goods were actually connectors imported in CKD condition and that by simple pliers can be assembled into connectors. - Held that - As is evident from the re-examination report, the contention of the appellants that what they imported was connectors in CKD condition and that the imported goods were assemblable into connectors by simple pliers is not negated thereby. The appellants contention is also in conformity with the finding recorded by the original adjudicating authority in the order dated 16.12.2009. The Commissioner (Appeals) has agreed that by virtue of Rule 2(a) of the General Rules of Interpretation in such a situation the goods will be treated as connectors. - Benefit of exemption allowed - Decided in favour of assessee.

Summary

Issues: Denial of benefit under Notification No. 21/2002-Cus for imported goods claimed as connectors in CKD condition.

Analysis:
The appeal was filed against an Order-in-Appeal that upheld a previous order denying the benefit of a customs notification for imported goods claimed to be connectors in CKD condition. The original order-in-original had stated that the imported goods, although capable of being assembled into connectors, did not qualify as connectors at the time of import as they required further processes like assembly and labeling. The Commissioner (Appeals) had observed that if each plastic bag contained parts of a complete connector, they should be treated as connectors under Rule 2(a) of the Customs Tariff Act. However, this aspect had not been examined properly by the adjudicating authority, leading to a remand back for further investigation.

In the subsequent impugned order, the adjudicating authority confirmed that the goods were parts of connectors but did not possess the essential character of a connector. A re-examination report described the goods as parts made of plastics, steel, and rubber in transparent poly bags, further packed separately. Despite this, the report did not disprove the appellants' claim that the goods were connectors in CKD condition and could be assembled into connectors using simple pliers. The original adjudicating authority's findings from the earlier order-in-original supported the appellants' contention, and the Commissioner (Appeals) agreed that under Rule 2(a), the goods could be treated as connectors if they formed complete connectors when assembled.

Ultimately, the Tribunal concluded that the appellants' claim aligned with the factual findings of the original adjudicating authority and the re-examination report. Therefore, the contention that the imported goods were connectors in CKD condition and could be assembled into connectors was upheld. The appeal was allowed, granting the appellants consequential benefits under the customs notification.