TOSHIBA ANAND BATTERIES LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THE Revision Application dated 22 -7 -80 against order -in -Appeal No. C3/2513/1978 dated 23 -2 -80, passed by the Appellate Collector of Customs, Madras, has been transferred by the Govt. of India to the Tribunal for disposal in terms of Sec. 131B(2) of the Customs Act, 1962.

(2.) THE appellants are an industrial concern manufacturing dry cell batteries. They imported 651 packages of carbon rods, which were cleared under B/E 'NO. C. 300 dated 6 -9 -78 on assessment to duty under item 85 18/27(6). Subsequently, a notice was issued by the Customs authorities u/s 28(1) stating that an amount of Rs. 11,803.50 was short -levied since the goods were correctly assessable under sub -item (1) of item 85.18/27. The Assistant Collector of Customs did not accept the contentions of the Appellants and held that the battery is technically an electrolyser and the carbon electrodes should be assessed under sub -heading (1), since item 85.18/27(6) is only for electrodes used in furnaces, and he confirmed the demand. The Appellate Collector also did not accept the appellants' plea that the batteries are doing the same function as electrolysers and held that batteries and electrolysers are two different articles. Sub -heading (6) covers carbon electrodes for (1) furnaces and (2) electrolysers and not carbon electrodes for dry batteries. He rejected the appeal.

(3.) IN the present appeal it is stated that the carbon rods become part of the battery only when they are embedded in manganese dioxide and a cap is fitted and hence they do not qualify, in the condition in which they are imported, for assessment as battery carbons under sub -item (1) of heading 85.18/27. As the battery employs the principle of electrolysis in utilising the carbon rod to light the bulb in the course of transit of the current, it is technically an electrolyser and sub -item (6) would be more appropriate for the carbon rods then sub -item (1), which covers battery corbons as the rods have also to be processed further. On these grounds, they plead for setting aside the impugned order.