1995 (5) TMI 100 - AT - Customs

Tribunal Rules on Classification of Imported Magnetic Buttons for Handbags

COLLECTOR OF CENTRAL EXCISE, BOMBAY Versus SEJISHA IMPORTS & EXPORTS

COLLECTOR OF CENTRAL EXCISE, BOMBAY Versus SEJISHA IMPORTS & EXPORTS - 1995 (78) E.L.T. 488 (Tribunal) Issues: Classification of imported goods under Heading 9606.22 or Heading 8309.90.The judgment involves a dispute regarding the correct classification of imported goods described as Magnetic Buttons (leather goods) at the Bombay Custom House. The initial classification under Heading 9606.22 CTA was challenged by the Custom House, which proposed a revised classification under sub-heading 8309.90, resulting in a higher duty demand. The Assistant Collector held that the goods were more appropriately classified under Heading 8308, while the Collector (Appeals) allowed the appeal against this decision. The key contention revolved around whether the goods fell under Heading 96.06 for buttons or Heading 83.08 for clasps and fasteners used in leather bags.The Assistant Collector based his decision on the HSN Explanatory Notes, which indicated that the imported goods were not buttons or fasteners covered under Heading 9606, but rather clasps for leather bags falling under Heading 8308. The Collector (Appeals), however, disagreed and classified the goods under Heading 9606.00, considering the literature and catalogue descriptions of the goods as magnetic buttons. The Departmental Representative argued that Heading 8308 was more specific to the imported goods, as the buttons under Heading 9606 were intended for garments, not leather goods like handbags. The respondents reiterated their stance that the goods were correctly labeled as magnetic buttons, as supported by the manufacturer's catalogue.Upon careful consideration, the Tribunal analyzed the manufacturer's catalogue, which described the goods as magnetic buttons for handbags and pouches, confirming their use in leather goods. Referring to the HSN Explanatory Notes under Heading 83.08, which covered clasps and fasteners for handbags, the Tribunal agreed with the Assistant Collector's classification under Heading 83.08. The Tribunal noted that the HSN Explanatory Notes under Heading 96.06 referred to pierced and shank buttons for garments, which required specific evidence to establish the imported goods' categorization. As such evidence was lacking, the Tribunal concluded that the magnetic buttons imported by the respondents were appropriately classified under Heading 83.08, setting aside the previous order and allowing the Department's appeal.