Chapter 98 classification and refractory brick exemption determined for industrial furnace slide gate plates

High alumina slide gate refractory plates imported for use in an industrial furnace were treated as parts of machinery falling under Heading 98.06 because Chapter 98 applies where its conditions are satisfied, even if another tariff heading is more specific. The document also states that the goods were regarded as refractory bricks of special shape and quality, so Notification No. 124/87-Cus. was held applicable and concessional duty available. The note thus contrasts tariff classification under Chapter 98 with the scope of the exemption notification for refractory goods.

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Issues: (i) Whether High Alumina Slide Gate Refractory Plates imported for use in an industrial furnace were classifiable under Heading 98.06 of the Customs Tariff or under Heading 6902.20. (ii) Whether the imported goods were entitled to the benefit of Notification No. 124/87-Cus. dated 1-3-1987.

Issue (i): Whether High Alumina Slide Gate Refractory Plates imported for use in an industrial furnace were classifiable under Heading 98.06 of the Customs Tariff or under Heading 6902.20.

Analysis: The goods were found to be parts of an industrial furnace. Note 1 to Chapter 98 provides that the Chapter applies to goods satisfying its conditions even if they are covered by a more specific heading elsewhere in the Schedule. Sub-heading 98.06 covers parts of machinery, equipment, appliances, instruments and articles of Chapters 84, 85, 86, 89 and 90. On that basis, the goods, though claimed to fall elsewhere, were held to be classifiable under Heading 98.06.

Conclusion: The classification was held to be under Heading 98.06 and not under Heading 6902.20, in favour of the Revenue.

Issue (ii): Whether the imported goods were entitled to the benefit of Notification No. 124/87-Cus. dated 1-3-1987.

Analysis: The notification granted concessional duty to refractory bricks of special shape. The goods were treated as refractory bricks of special shape and quality, and no contrary material was shown. In view of the classification under Heading 98.06 and the subsequent Supreme Court ruling holding that refractory blocks could also fall within the benefit of a similar notification, the exemption benefit was found available.

Conclusion: The imported goods were held entitled to the benefit of Notification No. 124/87-Cus. dated 1-3-1987, in favour of the Assessee.

Final Conclusion: The appeals were disposed of with the classification issue decided for the Revenue, while the exemption notification issue was decided for the Assessee.

Ratio Decidendi: For Chapter 98, a goods entry covering parts of machinery prevails for goods satisfying the chapter conditions even if they may otherwise fall under a more specific tariff heading, and a concessional notification for refractory bricks may extend to goods treated as refractory bricks of special shape and quality.

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