2000 (11) TMI 1055 - AT - Customs

Summary

Issues:
1. Classification of imported goods under sub-heading 8547.20 or Heading 39.
2. Applicability of a cited judgment to the facts of the case.
3. Interpretation of the judgment regarding the capacity of goods to shrink on application of heat.
4. Decision on the appeal and remittance of proceedings back to the Commissioner.

Classification of Imported Goods:
The case involved importers filing two bills of entry claiming goods as "material for Heat Shrinkable Sleeves." The Inner Layer was described by dimensions, while the Outer Layer was described by weight. The Assistant Commissioner classified the goods under Heading 39, not accepting the ratio of a Bombay High Court judgment. The Order-in-Appeal relied heavily on this judgment, leading to the Revenue filing the present appeal.

Applicability of Cited Judgment:
The main issue was the applicability of the cited judgment to the case. The respondents argued that the benefit extended not only to sheets for sleeves but also to base products like granules. The appellant contended that the judgment did not apply if goods were shown to be granules in the test report. The Tribunal noted a serious doubt about the judgment's applicability to granules, emphasizing the essential characteristic of shrinking on heat application.

Interpretation of Judgment:
The Tribunal examined the literature provided by the importers, detailing the production process of Heat Shrink Sleeves from granules and film. It was crucial to determine if the granules possessed the same heat-shrinking capacity as the resulting sheets. The judgment's application to granules hinged on whether they shared the shrinking ability of the sheets, necessitating consultation with chemical authorities for clarification.

Decision on Appeal:
After careful consideration, the Tribunal allowed the appeal and remitted the proceedings back to the Commissioner. The Commissioner was instructed to consider the observations made by the Tribunal and dispose of the matter in de novo proceedings. Additionally, the stay application was also disposed of in the judgment.