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TMI Blog1997 (4) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 while the revenue seeks the assessment of the same under Tariff Heading 3907 in terms of Section 19 of the Customs Act, 1962 inasmuch as the goods are imported in sets and the assessment would be at the highest rate applicable to any of the items of the sets. The importer Appellant/Respondent in Cross appeal seeks the benefit of Notification 133/86 Excise for CV duty purposes in case of Polyol. 2. In regard to the assessment of the screws with plastic washers, the learned SDR for the Department Shri Thyagarajan pleaded that Tariff Heading 7318.15 covers only articles of iron and steel and both screws and washers are covered separately under Heading 7318 and in case Screws are imported with their Washers, the same would be covered under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of screws is concerned. The impugned screws with plastic washers were, therefore, correctly classifiable under sub-heading 7318.15 only and not under Chapter 39. In any case, Section 19 of the Customs Act, 1962 is not invocable in the matter of classification of composite goods or articles. The order of the Lower Authority in regard to classification of stainless steel screw with plastic washers is, therefore, not maintainable. 4. The issue that arises for consideration in the appeals is whether the Stainless Steel Screw with Plastic Washers imported can be treated as set of articles and if so taking into consideration the interpretative rules, for interpretation of the tariff, and Section 19(b) of the Customs [Act], 1962, and the desc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he range of products sought to be covered under these headings are only those which are made of iron and steel. If Stainless Steel Screw and Washers made of iron and steel were imported separately, the two items will get assessed separately under Tariff Heading 7318.15 and 7318.21 or 22. We observe that when a heading is specifically covering articles made of a certain materials notwithstanding the fact that articles form a set with one of the items not covered under that heading it would not be covered under that heading. 6. In the present case, since the screw is made of stainless steel and washer is made of plastic material, in view of the specific coverage of goods made of iron and steel, the set as imported cannot be assessed under T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported in bulk as such. Rule 3(b), therefore, would not come into play for assessment of the goods in question. Therefore, the assessment will have to be considered under Section 19(b) of the Customs Act, 1962. Section 19 reads as under : 19. Determination of duty where goods consist of articles liable to different rates of duty. - Except as otherwise provided in any law for the time being in force, where goods consist of a set of articles, duty shall be calculated as follows : (b) articles liable to duty with reference to value shall, if they are liable to duty at the same rate, be chargeable to duty at that rate, and if they are liable to duty at different rates, be chargeable to duty at the highest of such rates; Since in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the said Notification and the effective rate of duty applicable was l5% only as against the tariff rate at 60%. The question that has to be addressed in this regard is whether polyester polyols and polyester resins are synonymous. The answer is obviously in the negative. In technical terms polyester polyols and polyester resins are two distinctive products and cannot be treated as one and the same. Obviously, therefore, the impugned polyols were not eligible for the concessions under CEN 133/86. However, CEN 14/92 was clearly applicable to the impugned polyols whether the same were classifiable under 3907.20 or 3907.99, and the effective rate of duty was 40% under the said notification (reference Sl. No. 43 of the table). Thus, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entitled to the benefit of the notification as claimed. 9. We have considered the pleas made by both the sides. We observe that the appellants are not disputing the classification of the goods under Tariff 3307.99. Their only plea is that since Tariff 3907.99 figures under Notification 133/86, as amended, the appellants should be given the benefit of exemption notification by reason of the goods falling under this tariff heading. We observe that Tariff 3907.99 figures under main description under Tariff 3907 which carries the following description : 39.07 Polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallyl (sic) esters and other polyesters, in primary forms ..... X X X X Extracts X X X X X X X X Extracts X X X X
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