TMI Blog1983 (12) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... of Customs. Both the Assistant Collectors and the Appellate Collector of Customs classified the goods, namely Ceramic Magnets imported by the appellants, under Item 73(11) of the ICT and rejected their claim for reassessment of these goods under item 87 of ICT and the consequential refund. The Appellate Collector has ruled that the goods in question are components of Loudspeakers and merely because they have to undergo the process of magnetization does not change their essential characteristic and accordingly they are to be treated as essential components of Loudspeakers, as originally assessed by the Customs authorities. The fact that they have been imported in un-magnetized condition does not alter the fact they are components of wirele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssification of these items under heading 87 of ICT without levying any Additional duty (countervailing duty). Sh. Banerjee, therefore, argued that the goods should more appropriately be classifiable under heading 87 of the ICT. 3. The Departmental Representative, Sh. V.M.K. Nair, reiterated the arguments already stated in the order-in-appeal of the Appellate Collector and stated that the Ceramic Magnets in question were of special shape and size made as component parts of the loudspeakers. They are complete articles by themselves. The processing, if any, done by the appellants after importation does not change their essential character. In any case, the processes involving cleaning of the magnets would not constitute more than 5% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of arguments, the Bench was informed that when the Indian Customs Tariff (old tariff prior to 1975) was in force, there was a rule that where post importation expenses exceeded 5% of the landed cost of the imported goods, the imported parts were not treated as complete finished parts. There was no statutory Rule as such but this was the practice followed under executive instructions of the Government. 6. Now if the figures regarding costing of processes submitted by Shri Banerjee are examined, for processing and cleansing for different kinds of Ceramic magnets the cost varies between ₹ 3.86 to ₹ 3.96 per hundred pieces. If the charges incurred on cleansing process are excluded, the remaining processes namely m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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