Appellate Tribunal Rules in Favor of Revenue on Customs Tariff Classification Dispute The Appellate Tribunal CEGAT, New Delhi, allowed the appeal filed by the Revenue challenging the classification of an imported consignment under Customs ...
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Appellate Tribunal Rules in Favor of Revenue on Customs Tariff Classification Dispute
The Appellate Tribunal CEGAT, New Delhi, allowed the appeal filed by the Revenue challenging the classification of an imported consignment under Customs Tariff Heading No. 9017.80. The Tribunal held that the goods did not fall under Heading No. 90.17 for instruments for use in the hand, as they required installation and were not handheld instruments. The matter was remanded to the jurisdictional Commissioner of Customs (Appeals) for proper classification, providing an opportunity for submissions. The impugned order-in-appeal was set aside, and the appeal was allowed by way of remand for re-examination of the classification issue.
Issues: Classification of imported consignment under Customs Tariff Heading No. 9017.80, classification of parts and accessories of comparators under Customs Tariff Heading No. 90.17
In this judgment by the Appellate Tribunal CEGAT, New Delhi, the appeal filed by the Revenue challenges the Order-in-Appeal passed by the Collector of Customs (Appeals), Madras, regarding the classification of an imported consignment referred to as gauging units supplied in CKD condition under Heading No. 9017.80 of the Customs Tariff. The Collector (Appeals) classified the goods under this heading based on the interpretation of Rule 2(a) and Notification No. 118/86-Cus. The Revenue contended that the parts and accessories of the comparators were not classifiable as parts and spares of comparators under Heading No. 90.17 of the Tariff.
Upon hearing arguments from both parties, the Tribunal carefully considered the matter. Heading No. 90.17 of the Customs Tariff covers instruments like drawing, marking-out, or mathematical calculating instruments, and instruments for measuring length for use in the hand. The Tribunal noted that the goods in question did not fall under the description of instruments covered by this heading, as they were not instruments for use in the hand. The Product Literature indicated that the etamic comparator required installation and was not a handheld instrument, further supporting the argument that it did not fit under Heading No. 90.17.
Considering the above analysis, the Tribunal concluded that the classification of the product under Heading No. 90.17 had not been properly examined by the Collector of Customs (Appeals). Both parties agreed that the matter warranted a remand to the jurisdictional Commissioner of Customs (Appeals) for re-examination. Therefore, the Tribunal set aside the impugned order-in-appeal and remanded the matter back to the jurisdictional Commissioner of Customs (Appeals) for proper classification of the goods in question, providing the respondents with an opportunity to make submissions on the issue.
Ultimately, the appeal was allowed by way of remand, and the Tribunal ordered the remand accordingly, emphasizing the need for a thorough re-examination of the classification issue by the jurisdictional Commissioner of Customs (Appeals) in light of the discussion presented in the judgment.
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