2016 (3) TMI 257 - AT - Customs

Classification - Polished Steel Balls - Whether to be classified under Chapter Heading 9608 or under Chapter Heading 73.26 - Held that by relying on the decision of the case of Collector of Customs, Bombay Vs. Sanghvi Swiss Refills Pvt. Ltd 1997 (6) TMI 152 - CEGAT, NEW DELHI as the products are the similar one the products imported by the appellant is held to be classifiable under Chapter 73, Heading 73.26. - Decided against the appellant

Summary

Issues involved: Classification of imported goods under Chapter Heading 9608 or 8482 of Customs Tariff Act, 1975.

Analysis:
1. Issue of Classification: The appellant contested the classification of imported polished steel balls under Chapter 73.26, arguing they were parts of ballpoint pens and should be classified under Chapter 9608 or alternatively under sub-heading No. 8482. However, the Tribunal found no merit in the appellant's argument as the goods were not considered parts of ballpoint pens but were used in the manufacturing process. The Tribunal referred to a previous judgment where it was held that polished stainless steel balls for ballpoint pens should be classified under Heading 73.33/40 of the Customs Tariff Act, 1975. Therefore, the imported goods were correctly classified under Chapter 73.26.

2. Precedence of Section and Chapter Notes: The Tribunal emphasized the importance of Section notes and Chapter notes in the classification process, stating they have statutory precedence over commercial and trade understanding. The Tribunal highlighted the relevance of Note 4 of Chapter 84, which specified the classification of steel balls based on diameters, and Note l(c) of Chapter 98, which excluded parts of base metal from a specific chapter. The judgment clarified that the classification must adhere to Section notes, Chapter notes, and Rules for Interpretation, disregarding arguments based on trade and commercial parlance.

3. Benefit of Notification: While the Tribunal confirmed the classification of the imported goods under Chapter 73.26, it noted a previous case where the products were eligible for consequential benefits. The Tribunal suggested that if any benefit of Notification was available to the appellant based on the classification under Chapter 73.26, it should be extended by the lower authorities. This decision aimed to ensure consistency and fairness in applying any available benefits to the appellant.

In conclusion, the Tribunal upheld the classification of the imported polished steel balls under Chapter 73.26, emphasizing the significance of Section notes and Chapter notes in the classification process. The decision also highlighted the potential extension of benefits to the appellant based on previous rulings, ensuring a fair application of relevant notifications.