1998(03)LCX0145
IN THE CEGAT, COURT NO. II, NEW DELHI
S/Shri Lajja Ram, Member (T) and S.S. Kang, Member (J)
INDIAN AIRLINES
Versus
COLLECTOR OF CUSTOMS, BOMBAY
Final Order Nos. 192 & 193/98-B2, dated 10-3-1998 in Appeal Nos. C/2140/91-B2 & C/42/91-B2
Advocated By : Shri M.J. Nambiar, Advocate, for the Appellant.
Shri R.S. Sangia, JDR, for the Respondent.
[Order per : Lajja Ram, Member (T)]. - These are two appeals filed by M/s. Indian Airlines being aggrieved with the two separate orders passed by the Collector of Customs (Appeals), Bombay. In Appeal No. C/2140/91-B2, the goods involved are Projection Screen Assembly for visual system of Air Bus A-320 Flight Simulator. In Appeal No. C/42/91-B2, the goods imported were a consignment of Printed Circuit Board for Simulator. The importers had claimed assessments under sub-heading No. 8805.20 of the Customs Tariff and had sought the benefit of exemption Notification No. 298/76-Cus., dated 2-8-1976. The Collector of Customs (Appeals) had denied the benefit of Notification No. 298/76-Cus. to the goods referred to above in both the cases.
2. We have heard Shri M.J. Nambiar, Consultant for the appellants and Shri R.S. Sangia, JDR, who is present for the respondents/Revenue.
3. Shri M.J. Nambiar, Consultant submitted that the High Powered Committee of Secretaries had accorded permission to pursue both the appeals in the Tribunal vide Serial Nos. 62 and 63 of the Minutes of the Meeting held on 10-10-1996. He explained that both the goods involved in these proceedings were High-tech items for Simulators on which the training is imparted to the trainees for flying the aeroplanes. The goods imported were specifically designed for the above specific purposes and were not general items of the trade. He pleaded that the simulators were clearly classifiable under Heading No. 88.05 of the Customs Tariff and as the parts imported were Parts of the ground flying trainers i.e. Simulators they were correctly classifiable under sub-heading No. 8805.20 and were eligible to the benefit of Notification No. 298/76-Cus.
4. In reply, Shri R.S. Sangia, JDR submitted that the goods imported were parts of simulators and Printed Circuit Board, which were electrical parts and were correctly classifiable under Heading No. 85.48 of the Tariff. He referred to the Note 11(f) under Section XVII of the Tariff wherein electrical machinery/equipment of Chapter 85 were excluded from the purview of Chapter 88 of the Tariff. He pleaded that the view taken by the Collector of Customs (Appeals) was correct and there was no merit in both these appeals.
5. We have carefully considered the matter. The goods imported were parts of the Simulator, which is used for imparting training to the trainees in flying. Under Chapter 88, aircraft, space craft and their parts are classifiable. Heading No. 88.05 covers the following :-
“Aircraft launching gear; deck arrestor or similar gear; ground flying trainers; parts of the foregoing articles”.
Under sub-heading No. 8805.20, ground flying trainers and their parts were covered. The ld. JDR had referred to Section Note 2(f) under Section XVII of the Tariff wherein it had been explained that the expressions parts and accessories do not apply among others to the electrical machinery or equipment whether or not they were identifiable as for the goods of Section XVII. The Heading No. 85.48 covers electrical parts of machinery or apparatus not specified or included elsewhere in this Chapter.
6. We find that the items had been described by the appellants in their communication dated 27-12-1990 as under :
HOM-1 CLOCK BOARD OF TRIADE-20
Purpose :
The HOM-1 board is essentially a component of the TRIADE-20 which is a part of the Pilot Instructor facility known as “Evasion” system used on the A-300 Flight Simulator.
The instructor station facility (EVASION) is used by the Flight Instructor to control various flight parameters and create simulated malfunctions and emergencies etc. for the purpose of training the pilots.
The instructor station has a T.V. monitor on which various flight parameters and malfunctions pages are dis-played.
Description :
The HOM-1 board generates the required clock signals and synchronisation signals for the T.V. Monitor. It also controls the memory read and write operations.
General :
This board cannot be used anywhere other than the A-300 simulator and it cannot function by itself.
Enclosed :
The operations and service manuals pertaining to “EVASION SYSTEM.”
The Technical Literature for the complete Simulator installation had also been placed on record. We find that under Chapter 85, various electrical machinery and equipment and their parts; sound recorders and re-producer television image and sound recorders and re-producers and parts and accessories of such articles are covered. The Revenue had sought to classify the goods in question under the residuary Entry 85.48 of the Tariff. On the basis of the description of the goods imported, we consider that between the sub-heading No. 8805.20 and sub-heading No. 8548.00, the goods were more appropriately classifiable under sub-heading No. 8805.20. Under Notification No. 298/76-Cus., dated 2-8-1976, the component parts of Simulators of aeroplanes and other aircrafts have been shown classified under Chapter 88 of the Tariff. It had been provided that when such component parts of simulators of aeroplanes and other aircrafts falling within the Chapter 88 of the Tariff were imported then the rate of duty applicable will be as if they were the component parts of aeroplanes or other aircrafts for those purposes they had been imported. Another Notification No. 299/76-Cus., dated 2-8-1976 (as amended) also indicated the classification of Simulators of aeroplanes within the Chapter 88 of the Tariff. Similarly, Simulators of Crafts other than aeroplanes had been shown classified under Chapter 88 under Notification No. 300/76-Cus., dated 2-8-1976 as amended.
7. From the understanding of the Department also, it appears that the Simulators were covered by the Chapter 88 and their parts similarly were to be classified under Chapter 88 and not under Chapter 85.
8. Taking note of the specific features of the goods imported, we consider that they were eligible for the benefit of Notification No. 298/76-Cus., dated 2-8-1976.
8A. In view of the above discussion, the impugned Orders-in-Appeal are modified in the above manner.
9. As a result, both these appeals are allowed. Ordered accordingly.
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Equivalent 1998 (103) ELT 227 (Tribunal)