1996(09)LCX0018

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri S.L. Peeran, Member (J) and Shiben K. Dhar, Member (T)

UNION CARBIDE INDIA LTD.

Versus

COLLECTOR OF CUSTOMS, MADRAS

Final Order No. C/1052/96B, dated 19-9-1996 in Appeal No. C/2316/88-B2

Cases Quoted

Union Carbide India Ltd. v. Collector — 1995(03)LCX0162 Eq 1995 (079) ELT 0521 (Tribunal)                            [Para 5]

Collector v. National Carbon Company — 1989(01)LCX0043 Eq 1989 (041) ELT 0433 (Tribunal)                         [Para 5]

Advocated By : Shri R. Subramaniam, Advocate, for the Appellant.

Shri S.N. Ojha, JDR, for the Respondents.

[Order per : Shiben K. Dhar, Member (T)]. - This appeal is directed against order dated 26-4-1988 of Collector of Customs (Appeals).

2. The appellants imported a consignment described as duplex electrodes for the manufacture of dry cell battery. These were classified by Customs authorities under the Heading 85.06. The appellants claim for assessment of these goods under the Heading 8545.90 instead of Heading 8506.90 under which the goods were originally classified, was rejected by the Assistant Collector. Collector (Appeals) upheld the order. Hence, this appeal.

3. Arguing for the appellants, the Ld. Advocate submits that their goods are rightly classifiable as carbon electrodes under Heading 8545.90. He draws support from interpretative Rule 3(b) to press his contention that the main definition of the goods comes from carbon even though the goods are composite goods. He submits that in past such goods had been assessed to duty under old tariff item 85.18/27(1) by Customs and in support of his contention, draws attention to the Order of the Collector (Appeals) placed at Page 16-18 of the appeal papers.

4. Ld. D.R. submits that these are not made out of carbon alone but are composite articles in which carbon does not contribute to the main function and, therefore, these goods are rightly classifiable under Heading 8506.90 under the new tariff as parts of primary cells and primary batteries.

5. We have heard both sides. We find from the letter dated 20-12-1986 from M/s. National Carbon Company placed in the appeal papers that film lined electrode consists of 3 ingredients, i.e., zinc, carbonecious coating and a film laminate. Zinc is electro chemically dissolved and generates electrical energy. Film laminate serves as the electrolyte of the electro-chemical system and carbonecious coating on zinc serves as a carbon electrode. In the case of Union Carbide India Ltd. v. C.C., Madras reported in 1995(03)LCX0162 Eq 1995 (079) ELT 0521 (Tribunal), the Tribunal, after considering in detail the technical literature, as also interpretative the Rule 3(b), and relying on earlier orders of the Tribunal in case of Collector of Customs v. M/s. National Carbon Company - 1989(01)LCX0043 Eq 1989 (041) ELT 0433 (Tribunal) - held that film lined electrodes are classifiable under Heading 85.03 as component parts of battery.

6. Following the ratio of earlier orders of the Tribunal, we hold that the impugned goods have been correctly classified under Tariff Item 8506.90 of the Customs Tariff, 1986.

7. In view of this, we uphold the impugned order and reject the appeal.

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Equivalent 1997 (90) ELT 224 (Tribunal)