1998(03)LCX0159
IN THE CEGAT, COURT NO. II, NEW DELHI
S/Shri Lajja Ram, Member (T) and S.S. Kang, Member (J)
COLLECTOR OF CUSTOMS, MADRAS
Versus
EAST MAN EXPORTS
Final Order No. 233/98-B2, dated 17-3-1998 in Appeal No. C/80/95-B2, C/CO/172/98
CASE CITED
Mafatlal Industries v. U.O.I. — 1996(12)LCX0012 Eq 1997 (089) ELT 0247 (S.C.) — Relied on [Para 5]
Advocated By : Shri R.S. Sangia, JDR, for the Appellant.
Shri Suresh Kumar, Sr. Asstt. Manager, for the Respondent.
[Order per : Lajja Ram, Member (T)]. - In this appeal filed by the Revenue, the matter relates to the classification of the goods described in the bill of entry as Industrial Iron (Presses for Shirts, Trousers and Jackets, complete Set with Standard Accessories). The respondents, M/s. East Man Exports filed bill of entry dated 8-10-1993 and claimed assessment under Heading No. 84.51 of the Customs Tariff with the benefit of concessional rate of Customs duty under Notification No. 16/85-Cus. The respondents had pleaded that the Industrial Iron imported by them had no heat shield and that it generated steam from gravity fed water supply tank. The Asstt. Collector of Customs, who adjudicated the matter, classified the goods imported under sub-heading No. 8516.42 of the Customs Tariff. As Chapter 85 was not covered by the Customs Notification No. 16/85-Cus., the benefit of that exemption was denied. On appeal, the Collector of Customs (Appeals), Madras referred to the HSN Explanatory Notes at page 1539 and after perusing the Literature on the subject Item, came to a finding that the NAOMOTO HY Steam Iron were meant for industrial use only. They were appropriately classifiable under Heading No. 8451.30 and were eligible for benefit under Notification No. 16/85-Cus. In appeal, the Revenue had contended that the goods imported were basically and essentially an electrical appliances having an additional feature of gravity fed water system and that being an electrical appliance, it was more appropriately classifiable under Chapter 85, sub-heading No. 8516.40.
2. We have heard Shri R.S. Sangia, JDR for the appellants/Revenue and Shri Suresh Kumar, Sr. Assistant Manager, who is present for M/s. East Man Exports.
3. We find that in the Invoice, the goods had been referred to as Industrial Iron - NAOMOTO HYS 610 Iron (Presses for Shirts, Trousers and Jackets, complete set with standard accessories). The goods had been referred to as Industrial Irons. The adjudicating authority had referred to the Catalogue of the product from NAOMOTO Industrial Co. Ltd., Japan, wherein it had been referred that the NAOMOTO HYS 610 Steam Iron generated steam from a gravity fed water supply tank. It was explained before him that the goods imported had no electrical heat shield. Chapter 84 of the Customs Tariff covered the mechanical appliances which were not more specifically covered by Chapter 85. The mechanical appliances specifically covered by Chapter 85 were, in other words, not to be classifiable under Chapter 84. In general, Chapter 84 covered machinery and mechanical apparatus and Chapter 85 covered electrical goods; however, machinery and apparatus of a kind covered by the Chapter 84 remained in that chapter even if electric. Such is the position explained in the HSN Explanatory Notes. The electrical heater press incorporating electrical elements remained classifiable under Chapter 84.
4. Heading No. 84.51 refers to the field of industry in which they were used. The respondents being a Government Recognised Export House had imported the goods in question for ironing the fabrics to be exported. Heading No. 84.15 covered a wide variety of machinery including those which were used for the ironing of fabrics and made-up textile articles. From the description given by the appellate authority, it is seen that the goods imported were having mechanical features and were not in the nature of smoothing irons which were covered by the Heading No. 85.10 of the Customs Tariff.
5. The ld. JDR had referred to the HSN Explanatory Notes where the scope of smoothing iron had been explained. The electric smoothing irons covers, smoothing irons of all kinds whether for domestic purpose or for tailors, dress makers etc. including cordless irons. Smoothing refers to the surface creeze to press-flat. According to Webster, the Ninth New Collegiate Dictionary Private Library Edition at page 639, Ironing is the action or process of smoothing or pressing with or as if with a heated iron. Iron is a household device usu. with a flat metal base that is heated to smooth, finish, or press (as cloth) or clothing with a heated iron. The Collector of Customs (Appeals) had observed that the Industrial Irons imported were suitable for ironing the rough and hard fabrics, for which the ordinary Irons were not suitable. He also noted that the cost of Iron press was around Rs. 14,100/. He had further observed that the Literature on the subject item indicate that the goods were for Industrial use only. After going through the material on record, we don’t find any ground to differ with the view taken by the Collector of Customs (Appeals). We do not find any merit in this appeal filed by the Revenue and the same is rejected. However, any refund, will be subject to the law of unjust enrichment as per the judgment of the Supreme Court in the case of Mafatlal Industries Ltd. - 1996(12)LCX0012 Eq 1997 (089) ELT 0247 (S.C.).
6. With these observations, the appeal is rejected. Ordered accordingly.
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Equivalent 1998 (103) ELT 267 (Tribunal)
Equivalent 1998 (026) RLT 0649