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TMI Blog1986 (5) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... gnments of Retaining ring Forgings under three Bills of Entry. The goods were assessed by the Custom House under Cutoms Tariff Heading 73.33/40 of C.T.A., 1975 @ 60% ad valorem basic customs duty + 25% ad valorem Auxiliary duty plus countervailing duty @ Rs. 165 per M. Ton. The appellants filed application for re-classification of the goods under Heading 84.11(1) C.T.A., 1975 @ 40% ad valorem basic customs duty plus countervailing duty at the aforesaid rate. The claims of the appellants for re-assessment under the Heading indicated by them were rejected first by the Assistant Collector of Customs and then by the Appellate Collector of Customs, Madras on the ground that the Retaining Ring Forgings did not attain the definite shape and essent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cifically manufactured and cannot be used in any other machinery. The foreign supplier completed 97.5% of the furnishing work in their factory before shipment of the goods and the operation done by the appellants after importation is only minor, representing not more than 2.5% of the cost of the imported goods. The basic operation carried on by the appellants mainly relate to reduction of outer diameter and increase of inner diameter and to improve the surface finish. They have, therefore, pleaded that the imported Retaining Ring Forgings should be assessed as component parts of compressors. In support of their plea, they have cited this Tribunal s orders in the following cases :- (i) BHEL v. Collector of Customs, Bombay (1985 E.L.T. 410) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33/40. The appeals filed by the appellants do not have any merits. 6. Learned Advocate Shri Gujral has tried to distinguish the facts in the case reported in 1984 (16) E.L.T. 613 and in the cases of the appellants which are before us for consideration. 7. We have considered the submissions of both sides. The argument of Shri Gopinath that the imported rough machined retaining ring forgings are for general use for generators and compressors is borne out by the description of the goods as pointed out by him in paragraph 5 (supra). Compressors and Free piston generators for gas turbines fall under Heading 84.11 of the Customs Tariff. The goods imported by the appellants are claimed to be for use in compressors. They claim assessment as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of imported goods is not relevant in these cases as the appellants have themselves conceded that earlier criterion for holding unfinished goods as component parts was abolished after introduction of the new Tariff under the Customs Tariff Act, 1975. The criterion of 5% post-importation processing is not applicatble to these goods. 9. The learned Advocate has cited five earlier decisions of this Tribunal and the learned SDR has cited one decision in support of their arguments. In this context, we are to observe that the decisions cited by them cannot be followed in these appeals as each case of this type is to be decided on merits taking into consideration the condition of the goods at the time of importation and the actual extent of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in machining, resulted in pole-end-plates which were component parts of synchronous condensers. According to Rule 2(a) of the Rules of Interpretation to the First Schedule to the Customs Tariff Act, 1975, those were ordered to be assessed as component parts. 12. In Bharat Heavy Electricals Ltd. v. Collector of Customs, Madras (1983 E.L.T. 181), the imported goods were forged stubs for boiler. The imported goods were in the shape of regular hollow cylinders of steel. In order to enable a boiler pipe to be connected on one side, one end of this cylinder had to undergo some machining so that the outer diameter was reduced. Thus, a tapered shape was imparted to one end of the stub. It was held by the Tribunal that the machining was of minor n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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