1987 (7) TMI 414 - AT - Customs

Tribunal Rules on Classification of Imported Goods: Sketching Pens vs. Stationery Pens

The tribunal classified the imported goods as pen nibs falling under heading 98.04-CCCN (98.03/09-CTA) of the Customs Tariff, rejecting the Collector ... Classification Issues: Classification of imported goods under the Customs Tariff - Whether the goods should be classified as consumer goods or as mathematical drawing pens.Analysis:The judgment pertains to the classification of imported goods under the Customs Tariff. The Collector (Appeals) had set aside the orders of confiscation of the lower authority for importing the goods without a valid import license. The goods in question were described as drawing/writing pen points or mapping pen points, invoiced with relevant code numbers. The tribunal observed that the nibs required insertion into a holder for drawing sketches, indicating the items were essentially sketching pens. Two alternative headings were considered for classification: headings 90.16 and 98.03/09. Heading 98.03/09 covers pens and pencils of all sorts and parts thereof, while heading 90.16 pertains to drawing instruments, marking out tools, and mathematical calculating instruments. The department emphasized that heading 98.04-CCCN includes pen nibs, supporting classification under heading 98.03/09 of the Customs Tariff.The tribunal found that heading 98.03/09 was more specific and, therefore, preferred for classification under Rule 3 of the Rules of Interpretation of the Customs Tariff. The tribunal disagreed with the Collector (Appeals) who had classified the goods under Item 90.16-CTA, arguing that the goods could not be considered stationery articles like writing pens. The tribunal concluded that the imported goods were essentially pen nibs falling under heading 98.04-CCCN (98.03/09-CTA), covering pen nibs with or without nib points for writing, drawing, lithography, or music writing. The respondents failed to establish the goods as parts of drawing instruments, leading to the tribunal allowing the appeal and ruling in favor of the department.