1997 (3) TMI 235 - AT - Customs

Appellate Tribunal rules against manufacturers of Aerosol Valves, classifying goods under Heading 84.81.

The Appellate Tribunal CEGAT, New Delhi, in a case concerning the classification of imported goods under CTH 98.06, ruled against the appellants, ... Classification Issues: Classification of imported goods under CTH 98.06, Interpretation of Chapter Note 7(d) and Notification 257/88In this judgment by the Appellate Tribunal CEGAT, New Delhi, the appellants, manufacturers of Aerosol Valves, imported nozzles as parts of these valves and claimed the benefit of Notification 69/87. The primary issue revolved around the classification of these goods under Heading 98.06. The appellants argued that since the goods were classifiable under Heading 8481.90, they should be classified under 98.06. However, the Revenue contended that goods falling under Heading 84.81, including those notified as general purpose parts under Notification No. 257/88, should not be classified under 98.06.The Tribunal analyzed Chapter Note 7(d) of Chapter Note 98, which empowers the Central Government to notify certain goods as having general application. It was noted that Notification 257/88, issued in exercise of this power, specified goods falling under Chapter Heading 84.81 as parts having general application. The Tribunal referred to a relevant case supporting the Revenue's position and emphasized that goods imported after the issuance of this notification would fall under its purview.The appellants argued that the components of Aerosol Valves they imported did not have general application and therefore should not be impacted by Notification 257/88. However, the Tribunal held that once goods are classified under Chapter 84.81, they are considered parts having general application as per the notification. The Tribunal concluded that parts falling under Heading 84.81 are excluded from the classification under Chapter 98.06 based on the legislative intent and the notification's provisions.Consequently, the Tribunal rejected all appeals and upheld the impugned orders, affirming the classification of the imported goods under Heading 84.81 and the exclusion from Chapter 98.06.