2001 (9) TMI 423 - AT - Customs

Imported steam irons classified as electric smoothing irons, not ironing machines.

SYNDICATE EXPORTS LTD. Versus COMMISSIONER OF CUSTOMS, CALCUTTA

The Tribunal upheld the classification of imported steam irons under Chapter Heading 8516.40 as electric smoothing irons, denying the appellants' claim ... Industrial Steam Irons under import being smoothing irons require Special Import Licence (SIL) Issues Involved:1. Classification of imported goods under the Customs Tariff.2. Eligibility for exemption under Notification No. 11/97-Customs.3. Compliance with import control provisions.Detailed Analysis:1. Classification of Imported Goods under the Customs Tariff:The primary issue was whether the imported steam irons should be classified under Chapter Heading 8451.30 as 'Ironing machines and presses (including, fusing presses)' or under Chapter Heading 8516.40 as 'Electric smoothing irons.' The appellants claimed the former classification, while the customs authorities classified the goods under the latter.The Tribunal examined the definitions and distinctions between 'ironing machines and presses' and 'electric smoothing irons.' According to the Encyclopedia of Textile Finishing, ironing machines are used for shaping and finishing work in the press room, leaving permanent creases and shapes on garments. In contrast, electric smoothing irons temporarily remove wrinkles and folds, providing only temporary smoothness to garment surfaces.The Tribunal noted that the literature provided by the importer did not indicate that the imported irons left permanent creases, a key feature of ironing machines. Instead, the irons only provided temporary smoothing, aligning with the characteristics of electric smoothing irons under Heading 8516.40. Therefore, the Tribunal upheld the classification of the goods under Heading 8516.40.2. Eligibility for Exemption under Notification No. 11/97-Customs:The appellants claimed exemption under Notification No. 11/97-Customs, which provided exemption for 'Steam Press' listed under List 10 for machinery or equipment required for the textile industry.The Tribunal found that the exemption was applicable only to machinery or equipment required for the textile industry. Since the imported irons were classified as electric smoothing irons and not as industrial ironing machines, they did not qualify as machinery required for the textile industry. Consequently, the goods were not eligible for the exemption under Notification No. 11/97-Customs.3. Compliance with Import Control Provisions:During the relevant period, electric smoothing irons were restricted for import and required a Special Import Licence (SIL). The appellants claimed import under the Open General Licence (OGL), which was not permissible for electric smoothing irons.The Tribunal observed that the lower authorities had correctly found that the imported goods were electric smoothing irons, which required a SIL. Since the appellants did not produce a SIL and instead claimed import under OGL, the import was in violation of the import restrictions. The lower authorities' actions, including confiscation of the goods and imposition of penalties, were upheld.Conclusion:The Tribunal concluded that the imported goods were correctly classified under Heading 8516.40 as electric smoothing irons. The appellants were not eligible for the exemption under Notification No. 11/97-Customs, and the import was in violation of the import control provisions due to the lack of a Special Import Licence. The appeal was rejected, affirming the decisions of the lower authorities.