Customs, Excise and Gold Tribunal - Delhi
Katrala Products (P) Ltd. vs Collector Of Customs on 30 August, 1989
Equivalent citations: 1990ECR545(TRI.-DELHI), 1989(44)ELT160(TRI-DEL)
ORDER
G. Sankaran, Sr. Vice-President
1. The only issue arising for determination in the present appeal is whether Polycarbonate Tubes (Bottle Guards) imported by the appellants were correctly classifiable under heading No. 84.19 of the First Schedule to the Customs Tariff Act, 1975 as it stood at the material time (as claimed by the appellants) or under Heading 39.01/06 as ordered by the Collector (Appeals) by the impugned order.
2. We have heard Shri J. Vellapally, Advocate with Shri S.K. Goyal, Advocate for the appellants and Shri G.V. Naik, Jt. CDR for the respondent-Collector.
3. In the order placed on the foreign suppliers for the goods, they are described as Transparent Polycarbonate extruded pipes of dimensions 63.5 MM OD X 61.5 MM ID X 210 MM. The goods were supplied under invoice dated 24-9-1984 and were described therein as Bottle Guards Part No. 18306 Drawing No. SR 30 (material extruded Polycarbonate). The goods were similarly described in the Bill of Entry for home consumption with further amplification "component for soda machinery". The drawing referred to in the invoice is part of the record and shows the same dimensions as mentioned in the order. Also on record is a leaflet on the "Instafizz" home soda-maker manufactured by the appellants. It is seen therefrom that the bottle containing water for aeration is inserted into the bottle guard which is then placed back in position and aeration with carbondioxide takes place thereafter. The leaflet also says that a built-in relief valve eliminates any possibility of excessive carbonation and that the pipeguard and transparent plastic front cover provide added safety.
4. It is the appellants' contention that these bottle guards being made to precise specifications for the specific purpose of being used as component part of the soda making machine would be properly classifiable as component parts of machinery for aerating beverages under Heading 84.19 of the Schedule under which the machinery falls. Parts of the machinery also fall under the same heading by virtue of Section Note 2(b) of Section XVI of the Schedule according to which parts of a kind not described in any of the headings of Chapters 84 and 85, if suitable for use solely or principally with a particular kind of machine are to be classified with the machines of that kind. On the other hand, the respondent's contention is that there is nothing to distinguish these goods as parts of soda making machines and that they are merely tubes made of plastic which should, therefore, correctly fall under Chapter 39 of the Schedule which deals with resin, plastic materials and articles thereof. It is also submitted that it has not been shown that these tubes are for exclusive use with soda making machine.
5. At first blush, it would appear that these are merely plastic tubes. However, it is to be noted that these have been made to precise specifications indicated in the drawing designated as SF. 30 and assigned Part No. 18306. It is also clear from the literature on the home soda-maker that the bottle guard is designed to be a part of the machine. In the nature of things, the tube has to provide an element of safety in the event of ex cessive carbonation. The literature states that the pipeguard and the transparent plastic front cover provide added safety in such eventuality in addition to the safety provided by a built-in relief valve. The evidence on record, in our opinion, points to the fact that these tubes are designed principally for use with the soda making machines, even if it has not been shown that they are exclusively designed for the said machines. According to Section Note 2(b) referred to earlier, such use has to be solely or principally with a particular kind of machine. Therefore exclusive usage is not necessary. The other point to be noted is that the length of the tubes, namely 210 MM would appear to rule out the possibility of use of the tubes as general purpose tubes for conveying gases and liquids which is the general use of pipes and tubes. At any rate, no general use for these tubes has been pointed out by the respondent. Chapter Note l(ii) to Chapter 39 of the Tariff Schedule provides that the said Chapter does not cover articles falling within Section XVI ("Machines and mechanical or electrical appliances"). In the present instance, the appellants have shown that the bottle guards which may have fallen in the normal course under Chapter 39, however, qualify for classification as parts of machines because of their dimensional specifications according to the drawing furnished to the suppliers and the use of the goods as component parts has also been satisfactorily explained. Therefore, in the present instance, the goods must be held to fall more appropriately under Section XVI rather than under Chapter 39.
6. In the state of the evidence on record, we are of the opinion that the subject goods correctly fell under 84.19 of the Tariff Schedule. The impugned order is modified to this extent and the appeal is allowed with consequential relief to the appellants.