2016 (3) TMI 257

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..... for disposal in the absence of any representation from appellant. 3. Heard the learned Departmental Representative. 4. On perusal of records and the grounds of appeals taken by the appellant, we find that the issue involved in these appeals is regarding the classification of the goods imported i.e. polished steel balls of 1 mm diameter and sought the classification under Chapter Heading 9608, alternatively under sub-heading No. 8482.90 of Customs Tariff Act, 1975 read with Customs Notification No. 146/86-Cus. dated 26.02.1986, but Revenue after following due process of law classified the product under Chapter 73.26. The appellants ground of appeals are classification under 73.26 is contested mainly on the issue that a products imported a .....

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..... of an article and understanding in the trade parlance, which should guide the classification of the item. We need not dwell much on this point, as this is a well settled proposition. However, we have to take into consideration the Section notes and Chapter notes for the purpose of classification in this case. They will have precedence over the functional test or the understanding in the trade and the commercial parlance. The reasons being the Section notes and Chapter notes are statutory in nature. They have an overriding effect over commercial and trade understanding as well as the functional test of an article. Although it is very clear that Chapter 98.03 refers to pens and pencils of all sorts. However Note 4 of Chapter 84 clearly states .....

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..... t of Chapter 98.03/09. It is to be observed that even as per the Rules of Interpretation classification has to be adopted in terms of Section notes and Chapter notes. The classification has to be adopted only under Heading 73.33/40 in view of Note 4 of Chapter 84 and Note l(c) of Chapter 98. The learned Advocate relied on the Import Policy and the clarification from the Ministry of Commerce for interpreting the classification under Import Policy. It has to be stated that the classification under Import Policy cannot guide the classification to be adopted under the Customs Tariff Act, 1975. The classification under this Act has to be done in terms of Section notes, Chapter Notes and the Rules for Interpretation. In the present case, the argu .....

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