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TMI Blog2023 (8) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ined with other objects or appliances may be used to achieve a high standard of cleanliness from germs and bacteria - The use of brass in sanitary wares for taps or knobs is by all means a well known phenomena in context of the business of kitchen and bathroom wares since such wares invariably come in contact with moisture or water, which has a high erosive value and brass is thus used in order to prevent rusting of the wares or fixtures for longer lasting durability and use. There is no denial of the fact that the consignment of goods that was exported was containing sanitary wares albeit few parts made of brass elements but nonetheless not in any manner pertaining to use or application in nuclear reactors, boilers, machineries and appliances . The respondent has clearly overlooked even the brochures pertaining to the items that amply demonstrates the essential features of the sanitary wares and use of brass so as to make the articles more elegant and durable for the use of end consumers. It is apparent that the respondent in a mindless manner has failed to even consider the common parlance and manner in which the articles are known, bought and sold in the marketing world. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TUAL BACKGROUND: 2. Briefly stated, the petitioner is holder of Import Export Code and is stated to be a regular exporter of CP Sanitary Bathroom Fitting in brass (Basin Mixer, Bath Mixer, Sink Mixer etc.), commonly known as sanitaryware under All Industry Rates Drawback Scheme [AIR DS] . It is stated that the subject goods are made of more than 90% brass and are chrome plated and are exclusively used in bathroom, kitchen etc. Suffice to state that after effecting the export of the consignment, the petitioner had claimed duty drawback @ 11% or Rs. 83 per kg (whichever was lower) on 07 September 2011, by classifying the goods under drawback heading No. 741902 Customs Tariff Act, 1975, as amended upto date [CTA] , while on the other hand, the Department asserted that the goods would be covered under sub heading 848180 of the CTA thereby attracting drawback @ 7.3% or Rs. 43.10 per kg. It was further alleged by the Department that the petitioner had deliberately classified the goods in question under Chapter heading No. 7419 with the sole intention of availing extra drawback, and thus, the petitioner had contravened the provisions of Section 75 of the Act read with Cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the heading providing a more general description. 5. The Revisionary Authority found that the view was supported by the Explanatory Notes for Chapter heading 8481, which provides as follows: In general, taps, valves, etc., are of base metal or plastics, but those of other materials (other than unhardened vulcanized rubber, ceramics or glass) are also covered by the heading. (12) Mixing taps and valves with two or more inlets and a mixing chamber. The heading also covers thermostatically controlled mixing valves incorporating an adjustable tension thermostatic element, which actuates the plugs or stoppers regulating the admission of fluids at different temperatures into the mixing chamber . 6. The impugned order dated 08 July 2022 has been assailed by filing the instant Writ Petition inter alia on the grounds that even before issuance of the Show Cause Notice, although the Department had found that the consignment contained sanitary wares and articles, it had adjudicated that the articles were essentially mixers of different kinds classifiable under Chapter heading 8481 of the CTA; and that the Revisionary Authority passed the impugned order in a mechanica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial available, that the goods in questions are classifiable under Chapter 84 of the CTA and the brochures/catalogues submitted were not decisive to permit a divergent classification; and the petitioner did not render correct classification of the goods in the shipping bills and hence drawback applicable to the product exported came under item No. 848101 of the Drawback Schedule. It was further stated that General Interpretative Rules (GIR) are to be applied for interpretation of Tariff and as per Rule 1, the titles of Sections and Chapters are provided for ease of reference only; and for legal purposes, classification shall be determined according to the terms of the heading and any relative Section or Chapter Notes. It was further submitted that Section XV covers Chapters 72 to 83 and Section XVI covers Chapter 84 and 85. Section note l(f) of Section XV of the Customs Tariff reads as follows: this Section does not cover articles of Section XVI (machinery, mechanical appliances and electrical goods) Further Chapter heading of Chapter 84 read as follows: Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Part thereof And description of goods under C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 741801 Sanitary and bathroom fitting (of gun metal) Kg 0.11% 120% 0.03% 32.4% 7418102 Sanitary and Bathroom Fittings including parts components thereof made of Brass (Nickel/Chrome Plated) Kg 0.11% 120% 0.03% 32.4% 741803 Electro plated nickel silver ware (EPNS) Kg 0.11% 120% 0.02% 21.6% 741898 Others of copper Kg 0.11% 145% 0.01% 13.2% 741899 Others of brass and other copper alloys Kg 0.11% 120% 0.01% 10.8% 7419 Other articles of copper - - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent that the details of the item brochures/catalogues, which were submitted by the petitioner at the earliest point of time, belies common sense and logic. There is no gainsaying that sanitary wares or fixtures are those equipments, which in isolation or combined with other objects or appliances may be used to achieve a high standard of cleanliness from germs and bacteria. The use of brass in sanitary wares for taps or knobs is by all means a well known phenomena in context of the business of kitchen and bathroom wares since such wares invariably come in contact with moisture or water, which has a high erosive value and brass is thus used in order to prevent rusting of the wares or fixtures for longer lasting durability and use. Per the Online Merrium Webster Dictionary, the words sanitary wares are defined as ceramic plumbing fixtures, such as sinks, lavatories, or toilet bowls and as per Online Dictionary.com it includes plumbing fixtures for use in as sinks or toilet bowls, made of ceramic material or enamelled material . As per The Cambridge Guide to English Usage, Pam Peters at page 486 the term sanitary or sanatory is defined as under: The first spelling san ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied for correct classification. There cannot be a static parameter for correct classification. It was held firstly that the (i) Harmonized System of Nomenclature (for short HSN ) along with the explanatory notes in the Excise Tariff provides a safe guide for interpretation of an Entry; secondly, the heading which provides a specific description shall be preferred to a heading having a more general description; and thirdly, due importance be given to the functional utility, design, shape and predominant usage while determining the classification of an item. 18. All said and done, the claim of the petitioner that the duty drawback should be classified vide heading No. 741903A ( A signifies a matter where CENVAT has not been claimed), as claimed in the prayer clause, is also misconceived since a bare perusal of the aforesaid tabulated tariff details would show that item No. 741902 in Chapter 74 pertains to artware/handicraft . By no stretch of imagination it can be said that merely because sanitary wares were having premium aesthetic and sleek design that such items would fall in the category of artwork/handicraft . We do not wish to tax ourselves delving into the meaning o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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