1997(04)LCX0043

IN THE CEGAT, COURT NO. II, NEW DELHI

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

J.K. SYNTHETICS LTD.

Versus

COLLECTOR OF CUSTOMS, JAIPUR

Final Order No. C/1037/97-B2, dated 29-4-1997 in Appeal No. C/1825/91-B2

Advocated By : Shri Sanjay Grover, Advocate, for the Appellant.

Shri K.K. Jha, SDR, for the Respondents.

[Order per : S.L. Peeran, Member (J)]. - This appeal arises from order in appeal, dated 7-12-1991 of Collector (Appeals) confirming the rejection of refund claim in respect of the imported items on the ground that these items are parts of general use and they are excluded in terms of Section XV and proviso to Notification No. 69/87-Cus., dated 1-3-1987. Both authorities have held that the item imported is rightly classified under tariff heading 73.18 and therefore the original classification under sub-heading 8413.91 is not correct.

2. Arguing on behalf of the Appellants, the Ld. Counsel submits that item is not a part of general use but are specifically used as spares and it also has a foreign mark. He points out to Sl. No. 3 of the table of the Notification No. 69/87-Cus., dated 1-3-1987 and submits that they are specifically included therein and therefore would not fall within the proviso of the Notification for exclusion as parts of general use as defined in Section XV. He also submits that the authorities cannot change classification adopted in original assessment in refund proceedings.

3. The Ld. D.R. submits that the item is a part of general use and therefore they are excluded from the purview of the Notification. He also submits that the Collector held that the Assessee had not produced any catalogue or literature to prove that the items are parts of general use. We have considered the submissions. On perusal of the records and Bill of Entry, we notice that the authorities had originally assessed the item under Chapter heading 8430.91. Both the authorities have changed the assessment of the goods in the refund proceedings without initiating any proceedings for reclassification by issue of show cause notice giving reason for such reclassification. In view of the fact that the Department has accepted the classification of the goods under Chapter heading 84.13 as part of pump they do not come within the category of “parts of general use” for exclusion from the benefit of the Notification. Therefore, we accept the appellants claim and allow the appeal by setting aside the impugned order.

Equivalent 1997 (94) ELT 99 (Tribunal)

Equivalent 1997 (021) RLT 0146 (CEGAT)