HSN classification of heat-exchanger tubes under Heading 73.04 defeats exemption claim under Notification No. 155/86

Seamless tubes specifically designed for heat exchangers were classified under Heading 73.04 because the HSN notes for that heading expressly include tubes and pipes suitable for use in heat exchangers. That specific coverage prevailed over the broader claim that the goods were parts of heat exchangers under Heading 84.19. As the goods did not fall under Heading 84.19, the exemption claimed under Notification No. 155/86 was not available. The classification under Heading 73.04 was therefore sustained and the exemption claim rejected.

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Issues: Whether seamless tubes specifically designed for heat exchangers were classifiable under Heading 73.04 or as parts of heat exchangers under Heading 84.19, and whether they qualified for exemption under Notification No. 155/86.

Analysis: The relevant HSN notes for Heading 73.04 state that tubes and pipes suitable for use in heat exchangers are included within that heading. On that basis, the goods were held to fall under Chapter 73 and not under Chapter 84. Since the goods were not covered by Heading 84.19, the claimed exemption could not be availed under Notification No. 155/86.

Conclusion: The classification under Heading 73.04 was upheld and the exemption claim was rejected, in favour of the Revenue.

Ratio Decidendi: Where HSN notes specifically include goods within a tariff heading, a more general claim to classification as parts of another machine or apparatus cannot override that express coverage for exemption purposes.

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