1998 (8) TMI 222 - AT - Customs

Summary

Issues:
Classification of 'Oscillating Disc Rheometer' under Chapter Heading 9027.80 vs. 9024.80, Claim for refund based on duty rate difference, Interpretation of technical characteristics and functions of the Rheometer.

Classification Issue:
The appeal involved the classification dispute of the 'Oscillating Disc Rheometer' imported by the appellants under Chapter Heading 9027.80 as claimed by the appellants or under Chapter Heading 9024.80 as classified by the Department. The Asstt. Collector argued that measuring mechanical property falls under 9024.80, while the Collector (Appeals) upheld this classification based on the technical literature provided by the manufacturers. The appellants contended that the main function of the Rheometer was to check viscosity and other functions during vulcanisation and curing, justifying its classification under Heading 90.27 for instruments and apparatus for physical or chemical analysis.

Technical Characteristics Interpretation:
The appellants argued that the Rheometer's function was to monitor processing, vulcanisation, and physical properties of rubber, emphasizing its role in measuring viscosity and final stage of curing. They pointed out that the Rheometer did not test mechanical properties like hardness or strength but rather focused on physical and chemical analysis, aligning with Heading 90.27. The Collector (Appeals) had relied on the premise that the Rheometer measured torque, but the appellants highlighted that torque measurement was just one aspect of its functions.

Judgment and Decision:
Upon considering both sides' submissions, the Tribunal analyzed the relevant Chapter Headings 90.24 and 90.27. It found that the Rheometer ODR 2000 imported by the appellants met the criteria of instruments/apparatus for physical or chemical analysis, including viscosity measurement, falling under Chapter Heading 90.27. The Tribunal disagreed with the Collector (Appeals) and held that the Rheometer's main function was to check viscosity, vulcanisation, and final stage of curing, supporting its classification under Heading 90.27. Consequently, the Tribunal ruled in favor of the appellants, classifying the Oscillating Disc Rheometer under Customs Tariff Heading No. 9027.80 and granting the benefits of Notification No. 158/89, setting aside the previous order and allowing the appeal with consequential benefits to the appellants.