TMI Blog1990 (3) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... s under heading No. 84.17(2) of the First Schedule to the Customs Tariff Act, 1975 ( the Customs Tariff , for short) at 60% ad valorem plus auxiliary duty of customs plus additional duty of customs. However, on the basis of the examination in the docks, the goods were reassessed under Heading No. 40.05/16(1) of the tariff at 100% ad valorem plus auxiliary duty of customs plus additional duty of customs, thus entailing payment by the appellants of an additional sum of duty. After clearance of the goods on payment of the duty so assessed, the appellants filed a claim for refund of duty amounting to Rs. 1,58,115.20. The claim was based on the ground that the goods were correctly assessable under Heading No. 84.17(2) of the Customs Tariff and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the counsel, Section note 2(b) supported the appellants claim for classification under Chapter 84. He also referred to Chapter note 3(c) to Chapter 40 whereby the present goods were excluded from the scope of Chapter 40. As regards the claim for exemption from additional duty of customs, he submitted that serial No. (iv) of the notification exempted solar heaters and systems. The present goods being an important component part of solar heating systems would fall within the purview of the said description. 5. The learned DR, on the other hand, submitted that from the manufacturer s literature it was not clear whether the goods were unhardened or hardened. No test would appear to have been conducted and, according to the DR, the goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the submissions of both sides and perused the record. The two headings which fall for consideration are the following :- 40.05/16 Preparations (including master batches) of natural or synthetic rubber; manufactures of natural or synthetic rubber, whether or not vulcanised or hardened, not elsewhere specified; vulcanised rubber thread and cord, whether or not textile covered and textile thread covered or impregnated with vulcanised rubber; waste and scrap of hardened rubber : (1) Not elsewhere specified (2) Rubber tyres and tubes for wheels of all kinds (3) Transmission, conveyor or elevator belts or belting of vulcanised rubber". (out of the above 3 sub-headings, the first sub-heading alone is relevant for the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and easy to ship and handle. The continuous length nature of the mat allows the installer to assemble and construct a system that is precisely the length and width desired. The literature further says that the absorber mat consists of six parallel and continuous circulation tubes. Between the tubes are narrow strips of webbing that act as heat collection plates. The mat contains carbon black throughout - there is no separate coating to chip or peel off. A passage on the cross-section of the mat reads as follows :- SolaRoll s unique heat exchanger/absorber mat is a series of EPDM tubes that are connected in an alternating pattern to the inlet and outlet manifolds of the collector. This counterflow design produces a uniform temperature t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows :- 3. The following are also not covered by this Chapter : (a) xxx xxx xxx (b) xxx xxxxxx (c) mechanical or electrical appliances or parts thereof (including electrical goods of all kinds), of hardened rubber, falling within Section XVI; This notes excludes parts of mechanical or electrical appliances of hardened rubber. 10. As regards the levy of additional duty of customs, it may be noted that Notification No. 120/81 dated 15-5-81 exempts solar water-heaters and systems, among other things, from the whole of the excise duty leviable thereon. It is the Revenue s contention that component parts would not come within the scope of this description, whereas the appellants contend that a system is made up of several com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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