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2024 (1) TMI 465 - CESTAT CHENNAIClassification of imported goods - Flanges - to be classified under CTH 85030090/84839000 or CTH 7307? - HELD THAT:- The claim of the importer that ‘the flanges that were imported were for its specific use’ needs to be accepted since the same were claimed to be used in the manufacture of gearboxes/gear motors and secondly, that the same was not of the likes of couplings or elbows. The claim of the appellant was based on the usage of the imported goods in its industry, for specific purposes, which is required to be considered primarily, before brushing aside the same. This is apparently not done by the Revenue and the original authority– Additional Commissioner chose only to go by the word “flanges”, thereby seriously ignoring whether the same was for specific/special use or for general use. Be that as it may, the original authority having rejected the classification under CTH 8503 and proposed to re-classify under CTH 7307, it was incumbent upon him to at least place on record that the flanges in question were in fact for general use alone and not for specific purpose as claimed by the appellant. If every ‘flange’ available in the market could be used in any industry, then perhaps the classification under a single CTH would have served that purpose, but since one size does not fit all, different classifications are provided. The classification thus depends on, inter alia, functionality as well. Hence, when an item is imported for a specific purpose, if the Revenue does not believe in the classification declared by such importer, then the same could be rejected on some palpable evidence and if required, the Revenue could always insist upon further details / explanation insofar as the function / end-use claimed by such importer is concerned, in order to ascertain the chief/primary function, to arrive at the proper classification, otherwise the purpose of having two Customs Tariff Headings loses its significance, which is not the intention of legislature. There are no substance or merits in the impugned order, to sustain the re-classification attempt made by the original authority as sustained in the impugned order, for which reason the same deserves to be set aside - appeal allowed.
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