Tariff classification of battery cells: specific heading coverage prevails over machine-part treatment, denying exemption.

Nickel cadmium battery cells imported for ultrasonic flow detectors were treated as independent tariff goods under Heading 8506, not as parts of the flow meters. Applying Rule 1 of the General Rules for Interpretation, the text of a clear heading prevails, so goods specifically covered by the tariff cannot be reclassified as machine parts merely because they are used in the machine. Because the batteries could be purchased separately and were not shown to be the substance of the flow meter, they did not qualify for exemption under Notification No. 97/89-Cus.

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Issues: Whether nickel cadmium battery cells imported for use in ultrasonic flow detectors were classifiable as parts of the flow meters so as to qualify for exemption under Notification No. 97/89-Cus.; and whether, under the tariff scheme, such batteries were to be treated as independent goods rather than parts of another machine.

Analysis: Primary cells and primary batteries are specifically covered by Heading 8506. Under Rule 1 of the General Rules for the Interpretation of the Tariff, classification is to be determined according to the terms of the heading, and where the heading is clear and unambiguous, no further qualification is required. On that basis, electric batteries are treated as goods in their own right and not as parts of another machine. The authorities relied on by the appellants were distinguished on the ground that they dealt with accessories or components in different factual settings, whereas the present goods could be purchased separately and were not shown to be the very substance of the flow meter.

Conclusion: The battery cells were not parts of the flow meters and did not qualify for the benefit of Notification No. 97/89-Cus.

Final Conclusion: The appeal failed because the imported battery cells were held to be independent tariff goods, not parts of the ultrasonic flow detector, and the claimed exemption was denied.

Ratio Decidendi: Where a tariff heading specifically covers a product in clear terms, classification must follow that heading and the product cannot be treated as a part of another machine merely because it is necessary for the machine's operation.

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