VOLTAS LIMITED Vs. COLLECTOR OF CUSTOMS BOMBAY

JUDGEMENT

(1.) The appellants imported certain components for manufacturing electrostatic precipitators. Two separate bills of entry were filed for clearance of these goods. The Customs authorities classified the said goods under Heading 84.18 (2 of the Customs Tariff Act, 1975. The appellants paid the duty under protest claiming that the correct classification would be Heading 84.17 (1 as parts of plant and machinery and went up in appeal. The disputed Headings 84. 01/02, 84.17 (1 and 84.18 are set out as under :

(2.) The tribunal examined the entries and also examined the imported materials. The tribunal came to the conclusion after examining the imported goods that the assessment under Tariff Item 84.18 (2 of the goods was wrong. The tribunal thereafter pointed out that the imported goods did not fall under Tariff Items 84. 01/02 and 84.17. There was a specific and explicit coverage of electrostatic precipitators in Tariff Item 84.18, this heading being more specific and precise than the two other heads must receive first preference. The other heads asked for by the importers were less preferable and, in fact, they would not cover electrostatic precipitators. Accordingly, the classification asked for by the importers would not be in order. The tribunal, however, stopped short of directing that the imported goods should be classified as electrostatic precipitators under Heading 84.18 (1. Having reached the conclusion that 84.18 (1 would have been the correct heading, there was no reason for the tribunal merely to dismiss the appeals and uphold the Revenue's contention. That means the Tribunal upheld the Revenue's classification of the imported goods under Heading 84.18 (2. After having held that this entry was inappropriate,the tribunal should have given a direction to make the amendment under Heading 84.18 (1 which, according to the tribunal, was the correct classification.

(3.) In that view of the matter, the appeals are allowed to the above extent. "the judgment and order under appeal is set aside. The goods imported by the appellants are directed to be classified under Heading 84.18 (1. Each party will bear their own cost.