1993 (12) TMI 117 - AT - Customs

Tribunal grants exemption for Ceramic Fibre Blocks import classification appeal

The Tribunal allowed the appeal in favor of the appellants concerning the classification of imported 'Ceramic Fibre Blocks (Pyro Blocks)' for industrial ... Classification Issues:Classification of imported goods under Heading 68.06 or Heading 98.06 for assessment of duty.Detailed Analysis:1. The case involved an appeal against the order passed by the Assistant Collector regarding the classification of imported 'Ceramic Fibre Blocks (Pyro Blocks)' for industrial furnaces. The dispute was whether the goods should be assessed under Heading 6806.90 or Heading 9806.00 based on different notifications and tariff headings.2. The Collector (Appeals) upheld the assessment under Heading 9806.90, considering the goods as parts of industrial furnaces falling under Heading 8514.90 and classifiable under Heading 9806.90 as per Note 1 to Chapter 98, even if covered by a more specific heading elsewhere.3. The appellants argued that the goods should be classified under Heading 68.06, citing Notification No. 26/84-Cus., which exempted 'Ceramic Fibre Blocks (Pyro Blocks)' under Heading 68.06. They contended that even after the introduction of Heading 98.06, the goods remained assessable under Heading 68.06 due to the specific notification.4. The respondents, representing the Revenue, asserted that after the introduction of Heading 98.06, all parts of machinery, including the imported goods, fell under Heading 98.06. They argued that the goods were correctly assessed under Heading 98.06 with Notification No. 69/87, making them ineligible for the exemption under Notification No. 26/84.5. The Tribunal analyzed the case to determine whether the imported goods should be classified under Heading 68.06 or Heading 98.06. The key question was the applicable classification at the relevant time for the 'ceramic fibre blocks (pyro blocks)'.6. Considering the nature of the goods as heat insulating materials used in industrial furnaces, the Tribunal examined Notification No. 26/84-Cus., which exempted the goods under Heading 68.06. The Tribunal agreed with the Revenue that after the introduction of Heading 98.06, the goods were correctly classified under Heading 98.06 as per Note 1 to Chapter 98.7. The Tribunal noted that the specific notification, i.e., Notification No. 26/84-Cus., did not apply to exclude the goods from Heading 98.06 as per Note 7(d) of Chapter 98, which only excluded items notified by the Central Government as parts of general applicability.8. Despite the goods being assessed under Heading 98.06, the Tribunal referred to a previous case law precedent to allow the appellants the benefit of the exemption under Notification No. 26/84-Cus., which was still in force and covered the specific goods under Heading 68.06.9. Relying on the precedent and the continued relevance of the specific notification, the Tribunal held that the appellants were eligible for the benefit of the exemption under Notification No. 26/84-Cus., even though the goods were assessed under Heading 98.06.10. Consequently, the appeal was allowed in favor of the appellants, providing them with consequential relief based on the classification under Heading 68.06 and the applicable exemption notification.