1995 (3) TMI 251 - AT - Customs

Appellate Tribunal Upholds Classification of Film Lined Electrodes as Primary Cells

The Appellate Tribunal CEGAT, New Delhi, upheld the classification of goods described as film lined electrodes under Heading 85.03 CTA '75 as part of ... Classification Issues: Classification of goods described as film lined electrode under Heading 85.03 CTA '75 as part of dry cell battery vs. under 85.18/27(1) CTA '75 covering carbon brushes or carbon electrodes and other carbon articles.In the judgment delivered by the Appellate Tribunal CEGAT, New Delhi, the issue at hand revolved around the proper classification of goods labeled as film lined electrodes. The Customs House had initially classified these goods under Heading 85.03 CTA '75 as part of dry cell battery, contrary to the appellants' claim for classification under 85.18/27(1) CTA '75, which pertains to carbon brushes or carbon electrodes and other carbon articles. The Collector of Customs (Appeals) had rejected the appeal against the classification under 85.03, leading to the current appeal before the Tribunal.During the proceedings, the appellants were absent, but had previously requested a decision on merits based on a previous Tribunal order (Final Order No. 11/89-B2). The Department representative highlighted that the cited Tribunal order favored the Department's classification of film lined electrodes as part of batteries under Heading 85.03 CTA '75.Upon careful consideration, the Tribunal analyzed the technical aspects and the scope of the competing Tariff Headings. The Tribunal observed that the imported goods, described as film lined electrodes, were intended to form the primary cells for flat dry cell batteries. The goods required a jacket for separation to complete the unit cell, as explained in technical references provided during the hearing.The Tribunal examined the interpretative Rule 2(b) invoked by the respondents, emphasizing that the goods imported were duplex electrodes, not carbon electrodes or battery carbons. It was clarified that the goods were composite articles consisting of a carbon layer, zinc sheet, and a paper lamination carrying the electrolyte, rather than a mixture of carbon with other substances. Therefore, the plea to apply interpretative Rule 2(b) was deemed unacceptable, and the classification was to be determined under interpretative rule 3.Ultimately, the Tribunal upheld the classification of the goods under Heading 85.03 CTA '75 as part of primary cells and parts thereof, considering the imported items as component parts of the primary cell. The Tribunal rejected the appeals and affirmed the Collector's classification under 85.03, based on the technical analysis and interpretation of the relevant tariff headings and rules.