Heat exchanger parts exemption upheld for special steel tubes used directly in manufacture

Seamless cold drawn carbon steel tubes imported for heat exchangers were treated as identifiable parts of the final equipment where import documents, the licence, the examiner's report and the end-use certificate consistently showed intended use in heat exchanger manufacture without further fabrication. The special specification of the tubes and their acceptance as matching the product requirements supported classification as parts rather than mere raw materials. On that basis, the exemption under Notification No. 155/86-Cus., dated 1-3-1986, was available to the importer.

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Issues: Whether seamless cold drawn carbon steel tubes imported for use in heat exchangers were identifiable parts of heat exchangers so as to qualify for the benefit of Notification No. 155/86-Cus., dated 1-3-1986.

Analysis: The goods were declared in the bill of entry and supporting import documents as components for heat exchangers. The import licence, examiner's report, and end-use certificate also supported the claim that the tubes were intended for and used in the manufacture of heat exchangers without further fabrication. The tubes were of special specification and were accepted as matching the requirements of the final product. In similar circumstances, exemption was held available where the imported tubes were special in quality and actually used in the assembly of heat exchangers.

Conclusion: The tubes were held to be parts of heat exchangers and the benefit of Notification No. 155/86-Cus., dated 1-3-1986 was held to be available to the appellant.

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