1989 (6) TMI 190 - AT - Customs

Appeal granted: Goods classified as parts of machine tool, not stainless steel plates

The Tribunal allowed the appeal by M/s. Assam Hardboards Limited, ruling in favor of the appellants regarding the classification of imported goods as ... Classification Issues:Classification of imported goods under different headings; Applicability of OGL Appendix 6(4); Validity of import license requirement; Confiscation under Section 111(d) of the Customs Act, 1962.Detailed Analysis:The case involves M/s. Assam Hardboards Limited appealing against the Collector of Customs, Calcutta's order regarding the classification of imported goods. The goods in question were 20 pieces of surface plates with lugs imported under OGL Appendix 6(4) as spare parts for machine tools for working wood. The revenue authorities classified the goods as stainless steel plates under Heading 7219.90, requiring a valid license. The appellants argued for classification under Heading 8466.92 as parts of machinery, contending that they were not stainless steel plates but parts for a hot press for hardboard manufacture. The Collector upheld the classification under Heading 7219.90, ruling out the machinery parts classification based on supplier literature and characteristics of the goods.The Collector took a lenient view on unauthorized importation but cautioned the appellants. The appeal before the Tribunal focused on the classification issue, with the appellants arguing for Heading 8466.92 based on the goods being parts with lugs, not stainless steel plates. Reference was made to a previous Tribunal judgment for similar classification. The respondent argued against the applicability of the referenced judgment and supported the original classification under Heading 7219.90. The Tribunal examined the facts, including the dimensions and characteristics of the goods, supplier's catalog, and photographs provided.After thorough consideration, the Tribunal found that the imported goods were parts of a machine tool for pressing hardboard, with specific characteristics and lugs, falling under Heading 8466.92. The Tribunal directed the revenue authorities to give effect to this classification. The appeal was allowed in favor of the appellants.In conclusion, the Tribunal's decision revolved around the proper classification of the imported goods, ultimately determining them to be parts of a machine tool under Heading 8466.92. The judgment highlighted the importance of considering specific characteristics and intended use in classification disputes, leading to a favorable outcome for the appellants.