Classification of imported flexible copper tubings under Chapter 8307 barred exemption meant for Chapter 85 goods.

Flexible copper tubings imported in running lengths were classified under Chapter Heading 8307 as flexible tubings with plastic covering. Note 1(k) of Section XVI excluded Chapter 83 articles from Chapters 84 and 85, so later cutting to size for use as microwave passive components did not affect classification. Because Notification No. 36/96-Cus. applied only to goods falling under Chapter 85, the end-use of the goods was immaterial once they were otherwise classifiable under Chapter 83. The imported goods were therefore treated as tubing as imported, not as parts, and exemption was unavailable.

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Issues: Whether the imported flexible copper tubings with plastic covering were classifiable under Chapter Heading 8307 as flexible tubings, and consequently whether they were eligible for exemption under Notification No. 36/96-Cus. applicable to microwave passive components under Chapter 85.

Analysis: The goods were imported in running lengths and, as imported, answered the description of flexible tubings with plastic covering under the specific tariff heading for such articles. Note 1(k) of Section XVI excluded articles of Chapter 83 from Chapters 84 and 85, so the mere fact that the goods would later be cut to size and used as microwave passive components could not govern classification. The exemption notification applied only to goods falling under Chapter 85, and the end-use of the goods was held to be immaterial where the goods were otherwise classifiable under Chapter 83. The earlier view treating similar running-length goods as parts was relied upon to support the conclusion that such imported goods are to be treated as raw material or tubing as imported, not as parts.

Conclusion: The goods were correctly classifiable under Chapter 8307 and were not eligible for the benefit of Notification No. 36/96-Cus.; the order of the Commissioner (Appeals) was set aside in favour of Revenue.

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