M/S STERLITE INDUSTRIES (INDIA) LTD. versus COMMISSIONER OF CUSTOMS, CHENNAI

Citation: [2007] 4 S.C.R. 84 · Decided: 19-03-2007 · Supreme Court of India · Bench: S.H. KAPADIA · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
MIS STERLITE INDUSTRIES (INDIA) LTD. 
,V. 
COMMISSIONER OF CUSTOMS, CHENNAI 
MARCH 19, 2007 
B 
[S.H. KAPADIA AND B. SUDERSHAN REDDY, JJ.] 
Customs Tariff Act, 1975: 
Sub-headings 9022. 19 and 9027. 00-"Fully automated sequential X-
C ray spectrometer"-'-C/assffication-Held, Tribunal has not examined the 
functional aspects of the apparatus-Matter remitted to Tribunal to decide 
the same de-novo after examining the catalogue annexed in the records-
Notijication No. 46196-Cus dated 23. 7.1996. 
D 
Appellant-assessee imported "Fully Automated Sequential X-ray 
Spectrometer" and filed its "Bill of Entry" for home consumption. It claimed 
benefit of partial exemption Notification No. 46/96-Cus dated 23. 7.1996 and, 
assessing the equipment under sub-heading 9027.00, paid the customs duty 
accordingly. The Revenue assessed the apparatus under Sub-he21ding 9022.19 
and accordingly charged the customs duty. 
E 
AIIQwing the appeal of the assessee and remitting the matter to the 
Tribunal, the Court 
HELD: The apparatus imported by the assessee is multi-functional. It 
has an inbuilt software and automatic analysis program. It is the software in 
F the System which makes the system carry out multi-purpose functions. The 
computer processes the data. The configurations are also s:pecified in the 
assembly of the Spectrometer. The catalogue/ brochure produced indicates 
that the Spectrometer in question would be non-functional without the 
computer. These aspects have not been considered by the authorities below. 
G The Tribunal would, therefore, decide the matter de novo after examining 
the catalogue annexed as Annexure-8 in its records. The Tl'ibunal can also 
consider the alternative submission of the assessee, namely, that the above 
item can fall also within sub-heading 9027.80. It is made clear that this Court 
has not expressed any opinion on merits. !Para 7) 188-E; 89'-A-B) 
H 
84 
\-
STERLITE INDUSTRIES (INDIA) LTD. "· COMMNR. OF CUSTOMS. CHENNAI [KAPADIA. l.] 
85 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 151 of2002. 
A 
From the Judgment and Order No. 1113 of2001dated13.07.2001 of the 
Customs, Excise & Gold (Control) Appellate Tribunal, South Zonal Bench at 
Chennai in Appeal No. C/R-26/97/MD. 
S.K. Bagaria, Rupesh Kumar and Tara Chandra Sharma for the Appellant. B 
P. Viswanatha Shetty, Sunita Rao, S.J. Aristotle, Shanti Bhushan and B. 
Krishna Prasad for the Respondent. 
The Judgment of the Court was delivered by 
KAPADIA, J. I. This civil appeal has been filed by Mis Sterlite Industries 
(India) Ltd. under section l30E of the Customs Act, 1962 against Order No. 
1113 of 2001 passed by CEGA T ("the Tribunal") on 13. 7 .200 l . 
2. The short' question which arises for determination in this civil appeal 
c 
is whether Fully Automated Sequential X-ray Spectrometer is an apparatus D 
based on the use of X-ray under sub-heading 9022.19 as claimed by the 
Department or whether the said apparatus is classifiable as Spectrometer 
under sub-heading 9027.30 being an apparatus for physical or chemical analysis. 
3. To decide the above question, we quote hereinbelow the following 
Heading of Chapter 90 of the Customs Tariff Act, 1975 which reads as under: E · 
"CHAPTER90 
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, 
CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENT 
AND APPARATUS; PARTS AND ACCESSORIES THEREOF -
Tariff 
Description of goods 
Rate of duty 
Item 
Std. Prefnl. 
9022 
Apparatus based on the use 
of X-rays or of alpha, beta or 
gamma radiations, whether or 
not for medical, surgical, dental 
or veterinary uses, including 
radiography or radiotherapy 
apparatus, X-ray tubes and 
other X-ray generators, high 
F 
G 
H 
86 
SUPREME COURT REPORTS 
(2007] 4 S.C.R. 
,., 
A 
tension generators, control 
panels and desks, screens, 
examination or treatment 
tables, chairs and the like. 
-Apparatus based on the 
B 
use of X-rays, whether or 
not for medical, surgical, 
dental or veterinary 
uses, including radiography 
or radiotheraphy apparatus: 
c 
9022.12 
-Computed tomography 
300/o 
apparatus 
9022.13 
-Other, for dental uses 
300/o 
9022.14 
-Other, for medical, '>urgical 
D 
or veterinary uses 
300/o 
9022.19 
-For other uses 
500/o 
-Apparatus based on the use 
of alpha, beta or gamma radiation, 
E 
whether or not for medical, 
surgical, dental or veterinary 
uses, including radiography 
or radiotherapy apparatus: 
902221 
-For medical, surgical, dental 
300/o 
F 
or veterinary uses 
~ 
902229 
-

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