2003 (4) TMI 200 - AT - Customs

Revenue appeal partly allowed; classification & benefit modified as per analysis. Appeal disposed.

COMMISSIONER OF CUSTOMS, TUTICORIN Versus JAN DE NUL NV.

The Revenue's appeal is partly allowed, with the classification and benefit of notification modified as per the detailed analysis provided. The appeal is ... Navigational equipment - Computer peripherals Issues Involved:1. Classification of various imported items as 'parts of Dredger' under Chapter 8905.2. Eligibility for the benefit of Notification No. 23/98-Cus., dated 2-6-98 under Sl. No. 230 and Notification No. 20/99, dated 2-6-99 under Sl. Nos. 228 and 230.3. Directions regarding allowing of duty drawback on the re-export of goods.Issue-wise Detailed Analysis:1. Classification of Various Imported Items:Navigational Equipment:The Commissioner (Appeals) incorrectly classified navigational equipment as parts of dredgers under Heading 8905.10. The correct classification is under Heading 85.26, which covers 'radar apparatus, radio navigational aid apparatus, and radio remote control apparatus.' The Section Note 2(e) of Section XVII excludes such items from being classified under Chapter 89. The original adjudicating authority's classification under Heading 85.26 is upheld.Computer Peripherals:The Commissioner (Appeals) erred in classifying computer peripherals as integral parts of dredgers. These items are classified under Heading 84.71, which covers 'automatic data processing machines.' Section Note 2(e) of Section XVII excludes them from Chapter 89. The original authority's classification under Heading 84.71 is upheld.Pumps:The Commissioner (Appeals) failed to provide a clear classification but noted their use in sucking dredged material. The correct classification is under Heading 8413.19, 'pumps for liquids,' as per Section Note 2(e) of Section XVII. The original authority's classification is upheld.Copper Rings, Copper Wool, and Other Articles of Copper:The Commissioner (Appeals) incorrectly classified these items as parts of dredgers. They are classified under Chapter 74 as parts of general use, excluded by Section Note 2(b) of Section XVII. The original authority's classification is upheld.Gantry, Earth Boring Machines, Lathes, Welding Machines, and Parts Thereof:The Commissioner (Appeals) incorrectly classified these items as integral parts of dredgers. They are independent machines classified under Chapter 84, excluded by Section Note 2(e) of Section XVII. The original authority's classification is upheld.Spherilock Cutter, Spherilock Adaptor, Pickpoints (Dredge Points):The Commissioner (Appeals) failed to provide a clear classification. These items are classified under Heading 84.31, as per HSN Explanatory Notes and Section Note 2(b) and 2(e) of Section XVII. The original authority's classification is upheld.Wearing Plates and Impellers:The Commissioner (Appeals) noted their use but failed to classify them correctly. They are parts of pumps classified under Heading 8413.91, as per Section Note 2(e) of Section XVII. The original authority's classification is upheld.Hubs:The Commissioner (Appeals) did not provide a clear classification. These items are classified under Heading 73.26 as steel parts of Cutter Head, excluded by Section Note 2(b) of Section XVII. The original authority's classification is upheld.2. Eligibility for the Benefit of Notification:Navigational Equipment:The Commissioner (Appeals) incorrectly granted the benefit of the notification. These items are not parts for the repair of dredgers. The original authority's denial of the benefit is upheld.Computer Peripherals:The Commissioner (Appeals) incorrectly granted the benefit of the notification. These items are not parts for the repair of dredgers. The original authority's denial of the benefit is upheld.Pumps:The Commissioner (Appeals) granted the benefit correctly, as these items are parts for the repair of dredgers. The benefit of the notification is upheld.Copper Rings, Copper Wool, and Other Articles of Copper:The Commissioner (Appeals) granted the benefit correctly, as these items are parts for the repair of dredgers. The benefit of the notification is upheld.Gantry, Earth Boring Machines, Lathes, Welding Machines, and Parts Thereof:The Commissioner (Appeals) incorrectly granted the benefit of the notification. These items are not parts for the repair of dredgers. The original authority's denial of the benefit is upheld.Spherilock Cutter, Spherilock Adaptor, Pickpoints (Dredge Points):The Commissioner (Appeals) granted the benefit correctly, as these items are parts for the repair of dredgers. The benefit of the notification is upheld.Wearing Plates and Impellers:The Commissioner (Appeals) granted the benefit correctly, as these items are parts for the repair of dredgers. The benefit of the notification is upheld.Hubs:The Commissioner (Appeals) granted the benefit correctly, as these items are parts for the repair of dredgers. The benefit of the notification is upheld.3. Directions Regarding Allowing of Duty Drawback on the Re-export of Goods:The Commissioner (Appeals) incorrectly gave directions regarding duty drawback, which was not an issue before the original adjudicating authority. This portion of the order is improper and not legal.Conclusion:The Revenue's appeal is partly allowed. The classification and benefit of notification are modified as per the detailed analysis above. The appeal is disposed of accordingly.