1989 (8) TMI 188 - AT - Customs

Summary

Issues: Classification of Polycarbonate Tubes (Bottle Guards) under Customs Tariff Act, 1975

Analysis:
The central issue in the present appeal was the correct classification of Polycarbonate Tubes (Bottle Guards) imported by the appellants. The dispute revolved around whether these goods should be classified under heading No. 84.19 of the Customs Tariff Act, 1975, as claimed by the appellants, or under Heading 39.01/06 as ordered by the Collector (Appeals) in the impugned order.

The goods in question were described as Transparent Polycarbonate extruded pipes supplied under specific dimensions and designated as Bottle Guards Part No. 18306 Drawing No. SR 30. These goods were intended for use as a component part of a soda making machine, as evidenced by the invoice, Bill of Entry, and supporting literature on the home soda-maker manufactured by the appellants.

The appellants argued that the precise specifications of the bottle guards, their intended use as component parts of machinery for aerating beverages, and the provisions of Section Note 2(b) of Section XVI of the Schedule supported their classification under Heading 84.19. On the other hand, the respondent contended that the goods were merely plastic tubes without exclusive use for soda making machines, thus falling under Chapter 39 of the Schedule.

Upon examination of the evidence, it was observed that the goods were designed to specific dimensions for use with soda making machines, providing added safety features for aeration processes. The length of the tubes, 210 MM, indicated a specialized purpose rather than general use for conveying gases and liquids. Additionally, Chapter Note 1(ij) to Chapter 39 excluded articles falling within Section XVI, which covers machines and mechanical appliances.

Ultimately, the Tribunal concluded that the Polycarbonate Tubes (Bottle Guards) were correctly classified under heading 84.19 of the Tariff Schedule. The impugned order was modified accordingly, and the appeal was allowed in favor of the appellants, granting them consequential relief.

This detailed analysis highlights the key arguments presented by both parties, the specific characteristics of the goods in question, and the legal provisions governing their classification under the Customs Tariff Act, 1975. The Tribunal's decision was based on a thorough evaluation of the evidence and relevant statutory provisions, resulting in a favorable outcome for the appellants.