2001(09)LCX0272

IN THE CEGAT, WEST ZONAL BENCH, MUMBAI

Ms. Jyoti Balasundaram, Member (J) and Shri J.H. Joglekar, Member (T)

JINDAL COSMETICS & PLASTIC MFG. CO.

Versus

COMMR. OF CUS. (IMPORT), MUMBAI

Order No. 2753/2001-WZB/C-I, dated 7-9-2001 in Appeal No. C/595/98-Bom.

Advocated By :   Shri G.M. Badkar, Advocate, for the Appellant.

Shri R.K. Pardeshi, JDR, for the Respondent.

[Order per : Jyoti Balasundaram, Member (J)]. - The appellants imported side panels with control knobs claiming them to be components of portable butane gas stove and sought classification of the imported goods under Customs Tariff heading 7321.90 as parts of gas stove and clearance under OGL. The authorities below have held that the goods acquired the essential characteristics of completion/finished product by virtue of application of Rule 2(a) of the General Rules for Interpretation of the Customs Tariff Act and accordingly required specific licence for importation. The Commissioner hence confiscated the goods with option of redemption on payment of fine of Rs. 1.5 lakhs. In addition he imposed penalty of Rs. 5,000/-. Hence this appeal.

2. We have heard both sides and seen the goods in question. There is no dispute that only side panels with control knob were imported. It is also not disputed that drip pan, burner and pan supports were also required to make it a complete stove. The question therefore that is to be decided is whether the side panels with control knob by themselves can be considered as having attained the essential characteristics of a gas stove. The function and purpose of a gas stove is for heating or cooking. This cannot be achieved without the burner or the drip pan/stand. Hence the goods cannot be said to have attained the essential characteristics of a portable gas stove. Therefore we hold that the Commissioner has wrongly applied Rule 2 of the Interpretative Rules. Since the goods are only parts of gas stove they do not require a licence for import. There has been no violation of Import Policy.

3. We accordingly set aside the confiscation and penalty and allow the appeal.

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Equivalent 2002 (149) ELT 0536 (Tri. - Mumbai)