2003 (8) TMI 103 - AT - Customs

Tribunal Confirms Classification of Imported Car Air-Conditioner, Radiator Parts Under Customs Tariff Act, 1975.

The Tribunal concluded the classification of imported parts for car air-conditioners and radiators under the Customs Tariff Act, 1975, by confirming the ... Classifications of imported parts for car air-conditioners and radiators - Condenser parts - HELD THAT:- The decision in the case [1992 (9) TMI 379 - SC ORDER] has been held by the Supreme Court. Therefore, classification of the entities in the form of tubes and or pipes has to be made under Heading 7608.20. The classification of the other products has to be considered as profiles under 7604, however it is found that if the profiles are further worked, they would result in an article or products of other headings then they cease to remain under Chapter 76. Their classification under 7604 cannot be therefore upheld, since they are further worked, as admittedly, they are caulked, fluted walled, etc. CBEC vide its Circular No. 6/90, dtd. 4-5-90 has clarified that heat exchanger is classifiable only under 84.19. In the Alphabetical Index to HSN notes, the same classification under Heading 8419.50 has been given and it is required to be classified as part of air conditioning machine vide Note 2(b) to Sec. XVI of the Tariff. However, even though condensers would fall under Heading 8415.50 as parts of air conditioning machine, their parts would be classified under Heading 8419.90. In view of Note 2(a) to Sec. XVI of the Tariff and the classification of the entities hereunder which relate to radiator, condenser and heat exchanger and items of general use to be classified as per the Section notes. Since the classification as arrived at is based on the Interpretative Rule for the Classification of the goods under the Customs Tariff, along with Section Note and Chapter Notes and in terms of the respective headings, the reliance of the lower authority on Rule 2 of the Interpretative Rules to the Tariff is uncalled for and not applicable. Thus, the classification is confirmed as per Para 3(g). Appeal disposed off in above terms with consequential relief, as per law. Issues involved: Classification of imported parts for car air-conditioners and radiators under the Customs Tariff Act, 1975.Classification of parts for car air-conditioners:The original lower authority classified the parts under Heading 8415.90, upheld by CC (Appeals) for items meant for condensers and radiators. The Tribunal remanded the matter for fresh consideration. The appellants claimed specific classifications for different parts based on material, design, and function.Classification of specific parts:- Tubes made of aluminum for radiators classified under 7608.20.- Pipes for core assembly classified under 7608.20.- Connectors and pipe fittings classified under 7307 and 7609.00.- Nuts classified under 7616.10.- Plate core and inserts for radiators classified under 8419.90.- Parts of condensers classified under Section Note 2(b) of Sec. XVI.Legal considerations:- Importance of determining the entity under dispute before classification.- Application of Statutory Rules for Interpretation and Chapter Notes.- Exclusion of parts of general use from specific chapters.- Relevance of HSN notes and non-Statutory Rules for Classification.- Precedents regarding classification of tubes and pipes under Chapter 76.Conclusion:The Tribunal confirmed the classification of the disputed items based on the Interpretative Rule for the Classification of goods under the Customs Tariff, Section Notes, and Chapter Notes. The reliance on specific rules and precedents was considered, leading to the final classification of the parts as per the findings. The appeal was disposed of accordingly with consequential relief.