Nickel cadmium cells as storage batteries: customs classification under Heading 85.04 and countervailing duty under the lower tariff entry.

Nickel cadmium cells are treated as rechargeable storage batteries rather than dry batteries for tariff classification. The text states that they fall under Heading 85.04 of the Customs Tariff for customs duty purposes. For countervailing duty, the same goods are assessable under Item 31(2) of the Central Excise Tariff, because the dry battery exemption does not apply to storage batteries. Consequential relief follows from the lower tariff entry, in line with earlier tribunal orders in the same matter.

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Issues: (i) Whether nickel cadmium cells were classifiable under Heading 85.04 of the Customs Tariff for customs duty purposes; (ii) whether, for countervailing duty purposes, the goods were assessable under Heading 31(2) of the Central Excise Tariff and whether consequential relief followed.

Issue (i): Whether nickel cadmium cells were classifiable under Heading 85.04 of the Customs Tariff for customs duty purposes

Analysis: The goods had already been the subject of earlier Tribunal orders in the appellant's own case. Those orders treated nickel cadmium cells as rechargeable storage batteries, not dry batteries, and upheld classification under Heading 85.04 of the Customs Tariff. The same reasoning was adopted here.

Conclusion: Classification under Heading 85.04 for customs duty purposes was confirmed.

Issue (ii): Whether, for countervailing duty purposes, the goods were assessable under Heading 31(2) of the Central Excise Tariff and whether consequential relief followed

Analysis: The earlier orders further held that although the exemption for dry batteries was inapplicable, the goods being storage batteries were assessable under sub-item (2) of Item 31 of the Central Excise Tariff, attracting the lower rate applicable thereunder. The same ratio was followed and applied to the present appeals.

Conclusion: The goods were assessable under Heading 31(2) for countervailing duty purposes and the assessee was entitled to consequential relief as directed in the earlier cases.

Final Conclusion: The appeals succeeded to the limited extent that the customs classification was maintained while the countervailing duty assessment was directed to follow the lower tariff entry, with consequential relief granted in line with the earlier orders.

Ratio Decidendi: Nickel cadmium cells are rechargeable storage batteries classifiable under Heading 85.04 for customs purposes, while for countervailing duty they fall under Item 31(2) of the Central Excise Tariff, with consequential relief flowing from that classification.

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