1997(08)LCX0152

IN THE CEGAT, SOUTH ZONAL BENCH, MADRAS

S/Shri V.P. Gulati, Vice President, and T.P. Nambiar, Member (J)

SRF LIMITED

Versus

COMMISSIONER OF CUSTOMS, CHENNAI

Final Order No. 2211/97, dated 20-8-1997 in Appeal No. C/2065/92-B

Advocated By : Shri Arvind P. Datar, Advocate, for the Appellant.

Shri R. Victor Thiagaraj, SDR, for the Respondent.

[Order per : V.P. Gulati, Vice President]. - The issue in the appeal relates to the classification of the goods which have been described as “Spring Clocks” and have been assessed by the learned lower authority under Tariff Heading 7320.90 as against the claim of the appellants for assessment under Tariff Heading 8448.49 (sic).

2. The learned Advocate for the appellants has pleaded that the items in question is intended to be fitted into a Double Clock Springs Disc, which is in turn fitted into the looms. He has pleaded because of the continuous spring action in the loom, the springs get worn out and require replacement time and again. He has pleaded that even though the springs are covered under Tariff Heading 7320.90 (sic), by reason of the exclusion as set out under the said heading in the HSN, the same would be classifiable under 8448.49. In this connection, he has drawn our attention to note at page 1032 figuring under the Heading 73.20 under the description heading “Excludes” at (c) under this heading which reads as “Springs assembled with other articles to form, for example, automatic door closers (Heading 83.02), identifiable parts of machinery (Section XVI) or of the apparatus and instruments of Chapters 90 and 91 etc.”

He has pleaded that since these springs imported is to form part of the double clock springs disc, the same should be taken to be covered by this note. He fairly concedes that in terms of HSN under 7320 springs and leaves for springs of iron or steel of all types irrespective of their use other than clock or watch springs are covered under that heading. He has pleaded that he is only pressing the note as above in support of his contention for assessment under Tariff Heading 8448.49.

3. Heard the learned SDR for the department. He has pleaded that springs in question by reason of the nature of the goods as such would squarely fall under Tariff Heading 7320.90 and the note referred to by the advocate would not come to the rescue of the appellants inasmuch as the spring in the form in which it is imported is not assembled to function as part of the machinery.

4. We have considered the pleas made by both the sides. We observe that the Tariff Heading 73.20 covers Iron & Steel springs other than clock and watch springs and according to HSN also springs of all types irrespective of their use are covered under Tariff Heading 73.20. Even in terms of Section Note XVI under which Tariff Heading 8448 falls, Section XVI does not cover the parts of general use as defined in Note 2 to Section XV of Base metal (Section XV for similar goods (Chapter 39). The articles of general use as defined in Note 2 to Section XV are as under :

(a) Articles of Heading No. 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal;

(b) Springs and leaves for springs, of base metal, other than clock or watch springs (Heading No. 91.14); and

(c) Articles of Heading Nos. 83.01, 83.08, 83.10 and frames and mirrors, of base metal, of Heading No. 83.06.

In Chapters 73 to 76 and 78 to 82 (but not in Heading No. 73.15) references to parts of goods do not include references to parts of general use as defined above.

Subject to the preceding paragraph and to Note 1 to Chapter 83, the articles of Chapter 82 or 83 are excluded from Chapters 72 to 76 and 78 to 81.

The springs are covered as articles of general use. Therefore by reason of these two Section Notes, the goods would be assessable straightaway under Chapter Heading 73.20. The reliance of the appellants on the HSN notes under which the springs assembled to form parts of the machinery stand excludes from the purview of the Chapter 7320 (sic), in our view, is not correct inasmuch as the exclusion covers only such of those springs which are imported in assembled form and which answer to the description of the excluded items as set out in the note. What has been imported is the springs as such. We, therefore, find no force in the plea of the appellants and dismiss the appeal.

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Equivalent 1998 (99) ELT 359 (Tribunal)

Equivalent 1997 (023) RLT 0744