TaxTMI 
TaxTMI 
TaxTMI 
1983 (4) TMI 280
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....he Customs Act, 1962 for disposal as if they were appeals presented before it. 2. The goods in relation to which the dispute in the present appeals has arisen are two consignments of "Diamonds impregnated grinding wires". The Customs authorities at Madras assessed them to duty under Heading No. 68.01/16(1) of the First Schedule to the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Schedule at 100% ad valorem (basic customs duty) plus 20% ad valorem (auxiliary duty) plus 15% (additional countervailing-customs duty). After clearance of the goods on payment of the duty so assessed, the appellants filed refund claims before the Assistant Collector on the ground that the goods were correctly assessable to duty unde....
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....hich have been transferred to this Tribunal, under the provisions of Section 131-B of the Customs Act, 1962 for disposal as if they were appeals presented before it. 3. In the Revision Applications (hereinafter referred to as appeals), the appellants have reiterated their contentions before the lower authorities to the effect that the subject goods correctly fell under Heading 82.05(1) in view of Note 1(c) to Chapter 82. In a write-up furnished along with the appeals, it has been stated that the subject diamond impregnated wire is used on a special purpose precision grinding machine for internal grinding of very small bore of the injector nozzle and that the form accuracy and the tolerances on the ground hole are extremely close. The ....
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....on a support of base metal, covered the present goods. He also submitted that, at the material time, only cutting tools were liable to central excise duty under Item No. 51A of the CET and not the present goods. For this purpose he relied on Board's Tariff advice No. 116/1/71-CX-3, dated 16-2-1972 (reproduced in the CET of 1971 by R.K. Jain) to the effect that the diamond dressing tools did not fall within the purview of the said Item 51A 5. Appearing on behalf of the Respondent, Shri Kunhikrishnan, referring to the Explanatory Notes appearing on page 1124 of the Customs Cooperation Council Nomenclature, Volume 3, under Heading No. 82.05, submitted that to qualify for classification under the heading the metal tool should be able to c....
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...., including dies for wire drawing, extrusion dies for metal, and rock drilling bits : (1) Not elsewhere specified (2) Rock drilling bits." Chapter Notes 82-1(c) & 1(d) : "Apart from blow lamps, portable forges, grinding wheels with frameworks, manicure and chiropody set and goods classified in Heading No. 82.07 and handles of base metal falling within Heading No. 82.08/15, this Chapter covers only articles with a blade, working edge, working surface or other working part of : *      *      *           * (c) precious or semi-precious stones (natural, synthetic or reconstructed) on a support of base metal; or (b)&emsp....
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....he like and that this wire is not a tool as such to retain its identity and function of a tool even after application of the abrasive, namely, diamond grains. On this reasoning they have held that the goods fall under Heading No. 68.01/16(1) as any article made of natural abrasives. The appellants, however, argue that the goods are in the nature of tools covered by Note 1(c) of Chapter 82 which deals with articles with a blade, working edge, working surface or other working part of precious or semi-precious stones, natural synthetic or re-constructed on a support of base metal. 8. Now, the technical "Write-up" furnished by the appellants makes it clear that diamond of a very fine grain size is uniformly coated on the base wire which i....
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....under Heading 68.04 (Pp. 885 to 887), Volume 2, makes it further clear that Chapter 82 covers only tools with cutting teeth, flutes, grooves, etc. which retain their identity and function even after application of the abrasive material, i.e. tools which could be put to use even if the abrasive had not been applied. The said Notes also make it clear that Heading 68.04 covers tools consisting of a centre or core of rigid material, such as metal on to which compact layers of agglomerated abrasives have been permanently bonded. Having regard to these Notes it is clear that the appropriate classification for the subject diamond impregnated grinding wire is 68.01/16(1) and not 82.05 of the Customs Tariff Schedule. 9. As regards the levy of ....