1998(07)LCX0306

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri P.C. Jain, Member (T) and S.S. Kang, Member (J)

COLLECTOR OF CUSTOMS, MADRAS

Versus

S.P.I.C. LTD.

Final Order No. 509/98-B2, dated 9-7-1998 in Appeal No. C/2573/94-B2

Advocated By : Shri S.N. Ojha, JDR, for the Appellant.

None, for the Respondents.

[Order per : P.C. Jain, Member (T)]. - The question involved herein is regarding the classification of polishing kit imported by the respondents herein. Initially, they were cleared under Tariff Heading 90.33 as spares for spectrometer. Later on the respondents filed a refund claim claiming exemption under Tariff Heading 90.27 as parts and accessories of spectrometer not otherwise specified. The original authority did not accept the claim. On appeal before the lower appellate authority the respondents herein succeeded. Hence, this appeal by the Revenue.

2. Ld. JDR Shri S.N. Ojha for the Revenue submits that in the appeal Revenue is claiming classification of the said goods under a different tariff heading altogether i.e. under Tariff Heading 38.23 inasmuch as but also of chemicals and compounds and therefore the proper tariff heading for classification according to the Revenue will be the heading under Chapter 38 of the Customs Tariff Act, 1975.

3. We have heard at length the ld. JDR in support of the Revenue’s aforesaid ground. We observe that polishing kit comprises of the following :

1. Polishing pad, self adhering (2 nos.)

2. Ground glass discs (2 nos.)

3. Polyethylene bottles containing special polishing compound.

4. 400 and 600 grinding compound.

5. Special camel hair brushes, and

6. KRS-5 polishing compound.

We also note at this stage, the catalogue available at page 23 of the appeal papers, indicates crystal polishing kit as falling under “miscellaneous infra-red accessories”.

4. In order to appreciate the Revenue’s contention, we reproduce ground No. 2 in the Revenue’s appeal :-

“2. Collector (Appeals) order treating this kit and the polishing material as parts of spectrometer is not based on facts. Collector (Appeals) himself observed that the impugned goods are polishing kit needed by spectroscopist. There is no denial to it that this kit and polishing material is needed by spectroscopist. But this do not establish that these goods are the part of spectroscope or spectrometer and merit classification at CTH 90.27. This kit contains following items :-

(i) Polishing pad, self adhering (2 nos.)

(ii) Ground glass discs (2 nos.)

(iii) Polyethylene bottles containing special polishing compound.

(iv) 400 and 600 grinding compound

(v) Special camel hair brushes, and

(vi) KRS-5 polishing compound

In the absence of separate value of these items, classification for the purpose of assessment has to be done under Section 19 of Customs Act, 1962 which provides classification of goods in such cases at the CTH, the item which attracts highest rate of duty. Hence, the impugned goods should be classified at CTH 3823 as chemical products and preparation of the chemical or allied industries not elsewhere specified or included.”

5. We have carefully considered the pleas advanced by the ld. JDR in support of the Revenue’s appeal. We have to assess the polishing kit and not merely the chemicals or compounds constituting part of the polishing kit. We observe from the catalogue that polishing kit is necessary for efficient functioning of the spectrometer. Therefore, we are not impressed by the plea of the Revenue that merely on the strength of some constituents of the polishing kit being chemicals, the whole thing should be assessed as chemicals under Chapter 38. Accordingly, we dismiss the appeal of the Revenue and confirm the classification upheld by the lower appellate authority.

Equivalent 1999 (113) ELT 579 (Tribunal)