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TMI BlogAdvance Licence - Instructions for verification of SBs covering exportsX X X X Extracts X X X X X X X X Extracts X X X X ..... (A) Briefs of such issues and the decisions taken by the Board on the same are enclosed herewith. (B) Field formations may finalise the pending assessments, if any, accordingly. (C) Suitable Public Notices may be issued for the benefit of the Trade. (D) Hindi version will follow. Enclosure Subject : Classification of Pontoon (i) upgraded as Accommodation Barge. Issue in Brief : This matter was discussed in the Tariff Conference of Chief Commissioners of Customs held at Kolkata on 22nd and 23rd January, 2004 [Agenda Point T-3]. Pontoon and Barges, which are usually used for the transport of goods and sometimes of persons are generally classified under Tariff Heading 8901. The Pontoon/Barge upgraded to an 'Accommodation Barge' is sought to be classified under Heading 8901, on the ground that there is a specific entry 89011040 for Barges. However, from the description, as well as usage of such vessels, it appears that these goods are essentially for the purpose of accommodating work personnel who are working on the production drilling platforms on the sea. The primary function of the vessel does not appear to be transportation of goods and persons but provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erates that when all the parts required for manufacture of the Cellular phone handset are imported by the manufacturer (either in the same consignment or spread out over different consignments), whether such imports of parts can be denied the benefit of serial No. 320 of the notification ibid., by treating them as complete handsets (in disassembled form) by virtue of Rule 2(a) of the General Interpretative Rules. If by doing this, they get treated as complete handsets under CTH 852520.17 in disassembled form, there is a possibility of denial of exemption under Sl. No. 320, which applies only to parts, components and accessories of cellular phones. If this exemption is denied, they would be otherwise charged to duty as applicable to handsets (5% BCD + 0% CVD) under Sl. No. 313 of Customs Notification 21/2002 dated 1-3-2002, read with the relevant C. Excise notification. The Conference deliberated over the following judgments relating to the application of Rule 2(a) of the General Interpretative Rules, specially CCE, Mumbai v. Maruti Udyog Ltd. [1996 (16) RLT 646 (Trib.)], Wipro GE Medical Systems v. CCE Customs, Bangalore [1999 (106) E.L.T. 169 (Trib.)], CCE, Mumbai v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to allow concessional duty for labeling machines which are for use in textile industry. The field formations have noticed import of Labeling machines of general purpose which can be used not only in textile industry but also in other industries. Labeling machines, imported by trading firms are normally used for general purposes and not in textile industry alone. But importers of such machines are claiming concessional rate of duty under the said notification by declaring them as machinery/equipment for use in textile industry. Rejection of the claim of the importers may not be found sustainable as the imported labeling machines can be used also in textile industries. Labeling machines being an omni-bus term, the Notification gives room for unscrupulous importers to avail of unintended benefit. Decision : The Board deliberated upon the language of the notification. The expression used in the notification is "…………..goods for use in the textile industry". The notification, therefore, does not appear to restrict the concession to only those machinery or equipment which was 'specifically designed for use' in the textile industry. The notification allows the import of general p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible to establish their identity. This notification is meant to cover cases of repair or reprocessing with the exported article retaining its identity. In the instant case what has been exported are fuel injection pumps and injectors and the items imported are engines (though fitted with the injection pumps and injectors). If the Govt. feels that such types of cases should be covered by the said notification, it should be suitably amended to do so. It has accordingly been decided by the Board that fuel injection pumps and injectors exported and re-imported after fitment onto engines are not covered by Notification No. 94/96-Cus., dated 16-12-96. (v) Subject : Import of ACT test tubes - Benefit as accessories of the ACT machine (Notification No. 21/2002-Cus., dated 1-3-2002, Sl. No. 363B). Issue in Brief : This matter was discussed in the Tariff Conference of Chief Commissioners of Customs held at Kolkata on 22nd and 23rd January, 2004 [Agenda Point N-13]. The issue relates to assessment of ACT (Activated Clot Time) test tubes and whether ACT test tubes can be considered as accessories of Activated Clot Time (ACT) machines and hence eligible for benefit of Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Board is of the view that since the ACT test tubes have single use only and have to be disposed of thereafter, it can not be considered to be components/parts of the ACT machine but would be in the nature of a consumable or accessory. It has therefore been decided by the Board that ACT test tubes are eligible for exemption under Notification No. 21/2002-Cus., dated 1-3-2002 - Sl. 363 B (List 37, Sr. 59). (vi) Subject : Admissibility of benefit of Notification No. 6/2002-C.E., dated 1-3-2002 (Sl. No. 63) on "Dant Mukta" used in the manufacture of Lal Dant Manjan. Issue in Brief : This matter was discussed at the Tariff Conference of Chief Commissioners of Customs held at Shillong from 13th - 15th May, 2004 [Agenda Point N-1]. Central Excise Notification No. 6/2002-C.E., dated 1-3-2002, Sl. No. 63, covers 'Tooth Powder' falling under CETH 33.06. Although the subject notification doesn't specify any sub-heading, the Central Excise Tariff specifies heading 3306.10 for 'Tooth Powder and Tooth Paste'. It, thus implies that for coverage under the said Notification, the goods should be classifiable under CTH 3306.10. Therefore, the issue under reference relates to classificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be 'raw materials or parts' for manufacture of vessels/ ships. Although strictly speaking, the said rafts and jackets are not directly raw material and parts used in the manufacture of ships, nevertheless these items are statutorily required onboard and therefore supplied by the shipbuilder. Decision : The Board took into account that the inflatable life jackets and life rafts were supplied as statutory supply for the ship. The certificate of ship worthiness issued by the authorities requires that the ship should be fitted with life jackets and life rafts. Additionally, the subject notification does not mention any specific chapter for the parts. Therefore, the Board has decided that the benefit of the referred notification (s) would be available on the import of inflatable life jackets and life rafts considering these as essential parts for the manufacture of ships. (viii) Subject : Scope of the exemption vide Notification No. 80/70-Cus., dated 29-8-1970 , as amended. Issue in Brief : This matter was discussed at the Tariff Conference of Chief Commissioners of Customs held at Shillong from 13th - 15th May, 2004 [Agenda Point N-7]. The aforesaid exemption exempts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The exemption under Notification No. 21/2002-Cus., Sl. No. 344 is allowed to "motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702) including station wagons, racing cars, new, which have not been registered anywhere prior to importation" . The question to be decided is whether the importer is eligible for the benefit of the said exemption under Notification 21/2002-Cus. when the car had been registered before its shipment. The supplier in certain cases certify that the Registration Nos. have been temporarily allocated for transportation of the motor vehicles from the showroom to the airport to facilitate its export. Some other instances have also come to notice when the cars though new, are registered abroad before being exported to India for exhibition, field trials, etc. Decision : The Board observed that condition (c) of category 2 (I) of Licensing Note to Chapter 87, states that a new imported vehicle for the purpose of this Chapter shall mean a vehicle that has not been registered for use in any country according to the laws of that country, whereas as per the referred Customs Notification, it should no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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