TaxTMI 
TaxTMI 
1991 (7) TMI 195
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Optical Lamps being manufactured by them as Actual User (Industrial) on the strength of their SSI Registration Certificate issued by the General Manager, District Industries Centre, Thane. The appellants declared the goods as classifiable under Heading 90.01 of the Customs Act read with Customs Notification No. 69/86. A show cause notice dt. 29-3-1990 was issued to the appellants alleging that the goods being Parts/Sub-assemblies of Artificial Flowers were classifiable under Heading 67.02 of the Customs Tariff and were covered by Item No. 13 of Appendix 2(b) of AM-1988-91 of Import Policy. The show cause notice further alleged that the goods were liable to confiscation under Section 111(d) and/or Clause (i) of (m) of the Customs Act, 1962....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Optical Fibre Lamps and claimed that the imported optic fibre bundles being parts of electric lamps were correctly classifiable under Heading 90.01 of the Customs Tariff and the appellants being Actual Users engaged in the manufacture of Optic Fibre Lamps, they were entitled to import them as components of Electric Lamps under OGL in terms of Appendix 6(1) of AM-1988-89 - Import Policy. 6. On behalf of the Department the learned JDR Shri M.S. Arora contended that the Imported goods have to be deemed as Artificial Flowers falling under Heading 67.02 of the Customs Tariff since they have the shape and appearance of flowers. He referred to the notes to Heading 90.01 of the HSN and contended that the disputed goods being Artificial Flowers ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ff. In this regard the following extract from note to Heading 67.02 of the Harmonised Commodity and Coding system (HSN) is relevant: "67.02 - ARTIFICIAL FLOWERS, FOLIAGE AND FRUIT AND PARTS THEREOF; ARTICLES MADE OF ARTIFICIAL FLOWERS, FOLIAGE OR FRUIT. 6702.10 - Of Plastics 6702.90 - Of other materials. This heading covers: (1) Artificial Flowers, Foliage and Fruit in forms resembling the natural products, made by assembling various parts (by binding, glueing, assembling by fitting into one another or similar methods). This category also includes conventional representations of Flowers, Foliage or Fruit made up in the manner of Artificial Flowers, etc. (2) Parts of Artificial Flowers, Foliage or Fruit ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....like material made by spraying fibre optic elements with an adhesive. From the catalogue showing various types of Fibre Optic Lamps filed by the appellants, it is seen that the imported goods are used in such lamps. The appellants have explained that in Fibre Optic Lamps, manufactured by them, the imported fibre optic bundles consisting fibre optic elements and few coloured flowers bound at one end are mounted on a rotating base and when current is passed through the elements they produce coloured light of low intensity. 11. On the basis of these details we are of the view that the disputed goods consisting of fibre optic elements and coloured flowers of such elements in form of a bundle bound at one end, are components of Fibre Optic Lamp....