1997(02)LCX0206

IN THE CEGAT, WEST ZONAL BENCH, MUMBAI

S/Shri K.S. Venkataramani, Member (T) and J.N. Srinivasa Murthy, Member (J)

COMMISSIONER OF CUSTOMS, MUMBAI

Versus

NEW ROSY ENTERPRISES

Order No. 807/97-WZB, dated 20-2-1997 in Appeal No. C/326-R/96-Bom

CASE CITED

Collector v. Cosmo Ferrites — 1993(12)LCX0054 Eq 1994 (070) ELT 0613 (Tribunal) — Distinguished         [Paras 1, 3]

Advocated By : Shri V.K. Puri, SDR, for the Appellant.

 Shir R.L. Bahl, Consultant, for the Respondent.

[Order per : K.S. Venkataramani, Member (T)]. - The facts of the case are that the respondent imported a consignment of Ferrite Cores and filed a Bill of Entry for their clearance in July, 1994 in the Bombay Custom House. The respondent claimed classification of the goods under Heading 85.05 of the Customs Tariff Act as parts of Electro Magnets. The Asstt. Commissioner of Customs however ordered classification of the goods under sub-heading 8529.00 C.T.A. which covers parts suitable for use principally with the apparatus of Headings 85.25 to 85.28. These apparatus include transmission apparatus for radio-telephony, Radar apparatus, radio navigational aid apparatus, receiption apparatus for radio-telephony and television receivers. The classification was so ordered on the ground that this classification has been decided upon by the Tribunal in its decision in the case of Commissioner v. Cosmo Ferrites - 1994 (070) ELT 613. The appeal against this order was allowed by the Commissioner (Appeals) who held that as per Section Note 2(a) to Section XVI of C.T.A. the goods imported are correctly classifiable under sub-heading 8504.90 of C.T.A. The Commissioner held that the goods are parts of transformers and the heading as above covers transformers and parts thereof.

2. Shri V.K. Puri, ld. SDR appearing for the appellant Commissioner contented that the classification adopted by the Asstt. Commissioner is on the basis of a Tribunal decision cited above and the ratio of the decision fully applies to the present case. The ld. SDR also pointed out that the Ferrite Cores imported find use only in the apparatus like television covered by Headings 85.25 to 85.28. Shri R.L. Bahl, the ld. Consultant for the respondent contented that the Tribunal decision was under the Central Excise Tariff Act, 1985 where under the Heading 8504.00 did not have any sub-headings at all for covering parts of transformers whereas sub-heading 8525.90 specifically covers parts of transformers under the Customs Tariff Act, 1975. The ld. Consultant submitted according to the rules for interpretation of the tariff, specific heading should be preferred for classification.

3. We have carefully considered the submissions. We find that the Tribunal decision in the case of Cosmo Ferrites had considered the classification of soft ferrites under sub-heading 8505.00 under the C.E.T.A. which had been adopted by the Asstt. Commissioner in that case holding that these are parts of electromagnets. But the Commissioner (Appeals) in that case overruled this and held them to be classifiable under Heading 85.29. The Tribunal upheld this classification adopted by the Commissioner (Appeals) and has overruled the classification of the goods as parts of electromagnets under Heading 8505.00. Therefore, question of classifying the goods as parts of transformers under 85.04 had not come up for consideration at all before the Tribunal in that decision. Moreover, Heading 85.29 covers parts suitable for use solely or principally with apparatus of Heading Numbers 85.25 to 85.28. The goods imported however, form part of the transformers, and, the ferrite cores by themselves, cannot be considered as parts of apparatus like television, radio, etc. since these are not directly used in them. They are directly used in the manufacture of transformers and coils. Heading 85.04 covers electrical transformers, static convertors and inductors; all transformers are covered by this heading; it also has sub-heading 8504.90 which is for parts. Therefore Ferrite Cores imported, being parts of transformers, sub-heading 8504.90 would be a specific heading for these parts of transformers. Sub-rule 3(a) of the Rules for Interpretation of the Tariff lays down that the heading which provides for the most specific description shall be preferred to Heading providing a more general description. Applying this rule also classification under sub-heading 8504.90 C.T.A. will be proper under the Customs Tariff Act for Ferrite Cores as parts of transformers. Section Note 2(a) of Section XVI of the C.T.A. also lays down that parts which are goods included in any of the headings of Chapter 84 or 85 are in all cases classifiable in their respective heading. In the present case Ferrite Cores as parts of transformers are included in the sub-heading 8504.90 C.T.A. and hence, by applying this Section Note also, its classification under that sub-heading will be appropritate. The Central Excise Tariff Act sub-heading 8504.00 which was considered by the Tribunal in its decision cited (supra) does not have any specific sub-heading at all as in the case of Customs Tariff Act sub-heading 8504.90. In the result, we see no reason to interfere with the order passed by the Commissioner (Appeals). The appeal is rejected.

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Equivalent 1998 (100) ELT 374 (Tribunal)