Functional classification of photo-copying machine parts prevailed over glassware heading, securing countervailing duty exemption.

Specially designed photo-printing cylinders used solely as components of photo-copying machines were treated as goods classifiable by their functional role under Heading 90.10 rather than as glass articles under Heading 70.21. The tariff text and chapter notes, which cover parts and accessories with a direct functional connection to the named apparatus, prevailed over the goods' material composition and over trade parlance. On that classification, the claimed exemption from countervailing duty under the cited notification was available, and the assessee's appeals succeeded.

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Issues: Whether the imported photo-printing cylinders were correctly classifiable under Heading 90.10 of the Customs Tariff Act, 1975 or under Heading 70.21, and whether they were entitled to exemption from countervailing duty under Notification No. 362/76-Cus. dated 2-8-1976.

Analysis: The decisive question was the true character and function of the goods. Heading 90.10 specifically covered photo-copying apparatus of the contact type, and the chapter notes supported the inclusion of parts and accessories having a direct functional role in such apparatus. The goods were shown on record to be specially designed cylinders used solely as components of photo-copying machines, with definite exposure-related function and optical transmission properties. Their mere composition as glass articles did not make Heading 70.21 controlling, and trade parlance could not override the tariff text, chapter notes, and the functional description in the heading.

Conclusion: The cylinders were correctly classifiable under Heading 90.10 and not under Heading 70.21, with the result that the claimed exemption from countervailing duty was available. The appeals were therefore allowed in favour of the assessee.

Ratio Decidendi: Where tariff headings and chapter notes specifically cover goods by their functional role as parts of a named machine, that specific classification prevails over a broader glassware heading, and trade parlance cannot defeat the express tariff scheme.

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