Pump for lotion dispenser classified under CTH 84248990 not CTH 84249090 for displacement and dispersal function

CESTAT New Delhi ruled on classification of pump for lotion dispenser. Importer classified goods under CTH 84248990 while Commissioner (Appeals) classified under CTH 84249090. CESTAT held the pump displaces and disperses lotion/cream, distinguishing it from scent sprays (CTH 9616) and liquid displacement pumps (CTH 8413). Tribunal upheld importer's classification under CTH 84248990 for pumps that displace and simultaneously disperse liquids. Commissioner's order classifying under CTH 84249090 was set aside. Department's appeal dismissed as they sought classification under CTH 8413.

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Issues Involved:
1. Classification of imported goods (pump for lotion dispenser) under the appropriate Customs Tariff Heading (CTH).

Summary:

Issue 1: Classification of Imported Goods
The primary issue is the classification of the imported goods described as "Pump-1.200-GS-THREAD-28/410-2N-192.0 (Pump for lotion dispenser)" under the appropriate Customs Tariff Heading (CTH). The appellant classified the goods under CTH 84248990, which was contested by the Shed Officer who suggested CTH 9616. The Original Adjudicating Authority classified the goods under CTH 84132000, while the Appellate Adjudicating Authority classified them under CTH 84249090.

Issue 2: Appeal by the Department
The department appealed against the classification under CTH 84249090, arguing that the goods should be classified under CTH 84132000. The department's representatives contended that the goods are intended for use in smaller containers and should fall under CTH 9616, which includes scent sprays and similar toilet sprays.

Issue 3: Appellant's Argument
The appellant argued that the goods are correctly classified under CTH 84248990, which includes mechanical appliances for projecting, dispersing, or spraying liquids or powders. They further contended that CTH 8413 covers pumps intended for industrial applications, which is not applicable to their product meant for dispersing small amounts of lotion.

Tribunal's Analysis and Decision
The Tribunal analyzed the classification rules and the nature of the imported goods. It was observed that the product is a pump for a lotion dispenser, performing the dual functions of transporting and dispersing the lotion. The Tribunal noted that CTH 8413 covers pumps for displacing liquids, whereas CTH 8424 includes mechanical appliances for projecting, dispersing, or spraying liquids or powders. The Tribunal concluded that the imported goods are more appropriately classified under CTH 84248990, as they are pumps meant for dispersing liquids, not merely displacing them.

Conclusion
The Tribunal set aside the Order-in-Appeal that classified the goods under CTH 84249090 and upheld the appellant's classification under CTH 84248990. The department's appeal for classification under CTH 84132000 was dismissed.

Order pronounced in the open court on 01.03.2024.

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