TMI Blog1983 (2) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... n Tubes made of impervious or resin-impregnated artificial graphite and imported by the appellants for manufacture of mechanical seals, fall under Heading 38.01/19(4) of the Customs Tariff Act, 1975, which relates to Artificial Graphite , as urged by the appellants, or under Heading 68.01/16(1) as articles of mineral substances, not elsewhere specified, as held by the Department. 3. The case was argued before us on 10th January, 21st January and 25th February, 1983. We were informed by the appellants that the Madras High Court had already granted them interim relief subject to bank guarantee for half of the duty differential between the two tariff headings. We were shown samples of the subject goods as well as of seal inserts or mecha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olutions of sugars or other organic products, and re-fired to graphitise the carbonaceous residues of these additives. The impregnation process may be repeated several times to obtain a higher density (1.9 or more) or a high degree of impermeability. Impregnated graphite may also be of nuclear grade. Artificial graphite of this heading is usually in the form of powder, flakes, blocks, plates, bars, rods, etc. The blocks and plates are used, after cutting and high-finish machining (fine tolerances and appropriate surface finish), to make the brushes and other electrical carbon articles of heading 85.24, and parts of nuclear reactors. The present heading also includes scrap, waste and worn out articles, suitable only for the recovery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e), for example; filters; discs; bearings; tubes and sheaths; worked bricks and tiles; moulds for the manufacture of small articles of delicate design (e.g coins, medals, lead soldiers for collections, etc.). The present heading therefore excludes : (a) Blocks, plates and similar semi-manufactures of artificial graphite or of carbon , mainly used for cutting into electrical brushes (heading 38.01 or 38.19) see corresponding Explanatory Notes). * * * * 4. There is no dispute that the subject goods were made of artificial graphite. To begin with, the Department s representative reiterated the ground relied upon by the lower authorities, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blanks . They showed photostat copies of Bills of Entry of the other importer, M/s Sealol Hindustan Ltd., Bombay, in which similar goods described as Carbon Blanks had been assessed by Bombay Custom House under Heading 38.01/19. They added that to their knowledge the Order-in-Appeal of the Appellate Collector of Customs, Bombay, referred to above, had not been subjected to review and that Bombay Custom House continued to assess similar goods under Heading 38.01/19 during 1981 and 1982 inspite of Tariff Advice No. 6/77 issued by the Central Board of Excise and Customs and relied upon by the Department s representative. They stated that they were discriminated against by different assessment practices followed by Madras and Bombay Custom H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Customs, Bombay, also was that the goods were cylinderical blocks. They added that a lot of machine operation such as turning, grinding, lapping, polishing etc., had to be done on the imported goods to turn them into finished seal inserts of specific dimensions required by the pump industry in the country. The value added on account of the work done, they argued, was so much that whereas one piece of the carbon block in U.S.A. would cost about $ 5, two finished seal inserts made out of it would cost $ 30 each. 8. We have carefully examined the samples, catalogues, the technical literature and all the records laid before us in this case and have given our earnest consideration to the matter. We are satisfied that the subject goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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