Warehoused goods classification turns on clearance date, determining customs exemption eligibility under the applicable tariff entry.

For warehoused imported goods, tariff classification is determined on the date of clearance for home consumption, not the earlier import assessment. On that basis, spares for a polyester film metallising plant were classifiable under sub-heading 8477.90, which applied to parts rather than the complete machine. Because goods under that sub-heading were covered by the relevant exemption entry in Notification No. 172/89-Cus., the concessional customs duty benefit was available at clearance. The commentary thus confirms that the operative classification at warehousing clearance controls entitlement to the notification benefit.

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Issues: Whether the imported spares for a polyester film metallising plant were classifiable under sub-heading 8477.90 at the time of clearance from warehouse and, if so, whether they were entitled to the benefit of Notification No. 172/89-Cus. dated 29-5-1989.

Analysis: The relevant classification for warehoused goods is to be determined on the date of clearance for home consumption. By that date, the earlier heading under which the goods had been assessed at import was no longer in the Tariff, and the correct classification of the imported parts was under sub-heading 8477.90 rather than 8477.80, which applies to the complete machine. Goods falling under sub-heading 8477.90 were covered by Sl. No. 48 of the notification and were therefore eligible for the concessional customs duty benefit.

Conclusion: The goods were correctly classifiable under sub-heading 8477.90 at the time of clearance and were entitled to the notification benefit; the finding of the lower authority was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the importer obtained the customs exemption benefit on the basis of the proper classification prevailing at the time of clearance from warehousing.

Ratio Decidendi: For warehoused goods, customs duty and tariff classification are determined with reference to the date of clearance for home consumption, and the applicable exemption notification must be applied to that classification.

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