3

CLASSIFICATION OF
IMPORTED AND
EXPORT GOODS

LEARNING OUTCOMES

After studying this chapter, you would be able to:

 comprehend the need for classification of goods and identify
the general explanatory notes.
 list the rules of interpretation of the First Schedule to the
Customs Tariff Act.
 understand the concept of Project imports.

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1. CUSTOMS TARIFF
 Need for classification of goods: One of the important steps in assessing
the amount of duty payable is classification of the goods within the ambit of
the Schedule to the Customs Tariff Act. The correct classification of goods is
necessary to ascertain the rate of custom duty which goods are subject to.
 The Customs Tariff Act, 1975
(a) Schedules to tariff

The Customs Tariff Act, 1975

First Schedule Second Schedule

enlists the goods liable enlists the goods liable

to import duty to export duty

(b) Rules of interpretation and explanatory notes

The Indian Customs Tariff is based upon the Harmonized System of
Nomenclature.
The Harmonized Commodity Description and Coding System (HS) of
tariff nomenclature generally referred to as "Harmonized System of
Nomenclature" is an internationally standardized system of names and
numbers for classifying traded products developed and maintained by
the World Customs Organization (WCO) (formerly the Customs Co-
operation Council), an independent inter governmental organization.
Along the lines of HSN, the customs tariff has a set of Rules of
Interpretation of the First Schedule i.e. Import tariff schedule and General
Explanatory notes.
(i) Rules of interpretation:- Six
(ii) General explanatory notes: Three
These rules of interpretation and general explanatory notes are an

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 CLASSIFICATION OF IMPORTED AND EXPORT GOODS 3.3

integral part of the Schedule. The purpose of inclusion of the rules of

interpretation and the general explanatory notes as an integral part of
the first schedule is to give clear direction as to how the nomenclature in
the schedule is to be interpreted and to give statutory force to the
interpretative rules and the general explanatory notes.
(c) First Schedule of the Customs Tariff
The First Schedule comprises of 98 chapters grouped under 21 sections.
(i) Sections: A group of Chapters representing a particular class of
goods.
(ii) Chapters: Each section is divided into various chapters and sub-
chapters. Each chapter contains goods of one class.
(iii) Chapter notes: They are mentioned at the beginning of each
chapter. These notes are part of the statute and hence have the
legal authority in determining the classification of goods.
(iv) Heading: Each chapter and sub-chapter is further divided into
various headings.
(v) Sub-heading: Each heading is further divided into various sub-
headings.

2. GENERAL EXPLANATORY NOTES

There are three general explanatory notes included in the First Schedule. They
are-
(a) Relevance of one dash [“-“] and two dash [“--“]
• “-“ denotes that the said article or group of articles shall be taken to be
sub-classification of the article or group of article covered by the said
heading.
• “--“ denotes that that the said article or group of articles shall be taken
to be sub-classification of the immediately preceding article/group of
articles which has “-“.
(b) Meaning of abbreviation “%” in relation to the rate of duty
The abbreviation “%” in any column of the Schedule in relation to the rate of
duty means that the duty shall be computed at the percentage specified on

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the value of the goods as defined in section 14 of the Customs Act.

(c) Standard rate of duty applicable if no preferential rate specified
In any entry, if no preferential rate of duty has been notified, the standard
rate of duty shall be applicable.
Illustration
The above general explanatory notes can be understood with the following
illustration:-

Tariff Item Description of goods Units Rate of duty®

Standard Preferential
Areas

(1) (2) (3) (4) (5)

0801 Coconuts, brazil nuts and

cashew nuts, fresh or
dried, whether or not
shelled or peeled

- Coconuts:

0801 11 00 - - Desiccated Kg. 70% 60%

0801 12 - - In the inner shell

(endocarp):

0801 12 10 - - - Fresh Kg. 70% 60%

0801 12 20 - - - Dried Kg. 70% 60%

0801 12 90 - - - Other Kg. 70% 60%

0801 19 - - Other:

0801 19 10 - - - Fresh Kg. 70% 60%

0801 19 20 - - - Dried Kg. 70% 60%

0801 19 90 - - - Other Kg. 70% 60%

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 CLASSIFICATION OF IMPORTED AND EXPORT GOODS 3.5

- Brazil nuts:

0801 21 00 - - In shell Kg. 30% 20%

0801 22 00 - - Shelled Kg. 30% 20%

- Cashew nuts:

0801 31 00 - - In shell Kg. 30% Free

0801 32 - - Shelled:

0801 32 10 - - - Cashew kernel, broken Kg. 70% 20%

0801 32 20 - - - Cashew kernel, whole Kg. 70% 20%

0801 32 90 - - - Other Kg. 70% 20%

In the above entry, following columns are there:-

Column (1): Tariff Item
Column (2): Description of goods
Column (3): Units
Column (4): Standard rate of duty
Column (5): Preferential rate of duty
(a) In the above entry, Coconuts, which is preceded by “-“ is classification of the
heading Coconuts, Brazil nuts and Cashew nuts, fresh or dried, whether or not
Shelled or peeled.
“- -“ is sub-classification of coconut which is preceded by “-“.
(b) The second explanatory note states that the abbreviation “%” stands for
specifying that the rate of duty is ad valorem. It means the duty shall be
computed at the rates specified in the First Schedule on the value of the
goods determined in accordance with section 14 of the Customs Act. In the
above entry, the standard rates are 30% or as the case may be, 70%.
Illustration
Briefly explain “standard unit of quantity” with reference to the First Schedule to the
Customs Tariff Act, 1975.

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Answer
Standard Unit of Quantity is a unit of measure. It has been prescribed in column
3 of the First Schedule to the Customs Tariff for each tariff item to facilitate the
collection, comparison and analysis of trade statistics. The unit of measure is
indicated by abbreviations. Some abbreviations are cc-cubic centimeter, cm-
centimetre(s), g-gram(s), mt-metric tonne.

3. RULES OF INTERPRETATION OF THE FIRST

SCHEDULE TO THE CUSTOMS TARIFF ACT
 Rule 1 – General Rule of Classification: The titles of sections, chapters and
sub-chapters are provided for ease of reference only; for legal purposes,
classification shall be determined according to the terms of the headings and
any relative section or chapter notes and provided such headings or notes do
not otherwise require, according to the subsequent rules [i.e. rule 2 to 6].

ANALYSIS
The above rule lays down the following propositions:-
(a) The titles of sections, chapters and sub-chapters do not have any legal
force.
(b) Terms of headings read with relative section and chapter notes are
legally relevant for the purpose of classification.
(c) The rules of interpretation need not be resorted to when classification is
possible on the basis of description in heading, sub-heading, chapter
notes and section notes.
(d) Notes of one chapter or section cannot be applied for interpreting
entries in other chapters or sections.
Product: Letter closing and sealing machine
Sub-heading 8422 30 00: Machinery for filling, closing, sealing or
labeling bottles, cans, boxes, bags or other containers; machinery
for capsuling bottles, jars, tubes and similar containers; machinery for
aerating beverages.

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Sub-heading 8472 30 00 inter alia covers machines for closing or sealing

mails.
Both the headings appear to be relevant for the product in question.
However, chapter note 2 to chapter 84 inter alia provides that Heading No.
8422 does not cover office machinery of Heading No. 8472. Therefore, the
product in question will be classified under 8472 30 00.
Illustration
Write a brief note on rule 1 of the Rules of Interpretation of the First Schedule
to Customs Tariff Act, 1975.
Answer
Rule 1 of the general rules for interpretation states that the titles of sections,
chapters and sub-chapters in the First Schedule to the Customs Tariff Act,
1975 are provided for ease of reference only. For legal purposes,
classification shall be determined according to the terms of the headings and
any relative section or chapter notes and provided such headings or chapter
notes do not otherwise require, according to the subsequent rules.
Thus, the tiles of sections, chapters and sub-chapters cannot be used to
determine classification of a product.
 Rule 2(a) Classification of Incomplete/Unfinished Articles
(i) Any reference in a heading to an article shall be taken to include a
reference to that article incomplete or unfinished, provided that, as
presented; the incomplete or unfinished article has the essential
character of the complete or finished article.
(ii) It shall also be taken to include a reference to that article complete or
finished (or falling to be classified as complete or finished by virtue of
this rule), presented unassembled or dis-assembled.

ANALYSIS
(i) If any particular heading refers to a finished/complete article, the
incomplete/unfinished form of that article shall also be classified under
the same heading provided the incomplete/unfinished goods have the
essential characteristics of the finished goods.

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(ii) If any particular heading refers to a finished/complete article, the

unassembled/dis-assembled form of that article shall also be classified
under the same heading provided the unassembled/dis-assembled
goods have the essential characteristics of the finished goods.
(a) Railway coaches removed without seats would still be
railway coaches.
(b) A car without seats would still be classified as car.
Only goods requiring minor adjustments can be construed as having the
essential character
Only goods requiring minor adjustments would be construed as having the
essential character. Those requiring major processes like turning, grinding,
broaching, groove cutting, heat treatment, surface treatment etc., cannot be
construed as having the essential character of complete and finished articles
and cannot fall within the scope of rule 2(a) of the General Interpretative Rules.
 Rule 2(b) – Classification of Mixtures/Combinations of a
Material/Substance with Other Materials/Substances
(i) Any reference in a heading to a material or substance shall be taken to
include a reference to mixtures or combinations of that material or
substance with other materials or substances.
(ii) Any reference to goods of a given material or substance shall be taken to
include a reference to goods consisting wholly or partly of such material
or substance.
(iii) The classification of goods consisting of more than one material or
substance shall be according to the principles of rule 3.

ANALYSIS
The following propositions are laid out by the above rule.
(a) Any reference to a material or substance would refer to mixture or
combination of that material or substance.
(b) Any reference to goods containing a particular material or substance
would include a reference to goods consisting wholly or partly of such
specified material or substance.

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(a) The term coffee will include coffee mixed with chicory.
(b) Natural rubber will cover a mixture of natural and synthetic
rubber.
 Rule 3 – Classification in case goods are classifiable under two or more
headings: The application of this rule arises when the goods consists of more
than one material or substance.
When by application of rule 2(b) or for any other reason, goods are, prima
facie, classifiable under two or more headings, classification shall be effected
as follows:
 Rule 3(a) – Specific over general
(i) The heading which provides the most specific description shall be
preferred to headings providing a more general description.
(ii) However, when two or more headings each refer to part only of the
materials or substances contained in mixed or composite goods or to
part only of the items in a set up for retail sale, those headings are to be
regarded as equally specific in relation to those goods, even if one of
them gives a more complete or precise description of the goods.

ANALYSIS
The heading that provides a more specific description should be preferred
over the heading that provides a general description.
Relevant case law: Electric shaving machine was classifiable under following
two headings:-
Heading No. 85.10: Shavers and hair clippers with self contained electric
motors
Heading No. 85.09: Electro-mechanical domestic appliances with self-
contained electric motor
The said product in the above instance would be classifiable under heading
No. 85.10 as heading No. 85.10 is more specific as compared to heading No.
85.09 .
 Rule 3(b) – Essential character principle: Mixtures, composite goods
consisting of different materials or made up of different components, and

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goods put up in sets for retail sale, which cannot be classified with reference
to (a), shall be classified as if they consisted of material which gives them
their essential character, in so far as this criterion is applicable.

ANALYSIS
Sub-rule (b) would apply only if the goods cannot be classified under sub-
rule (a). This sub-rule provides that composite goods should be classified on
the basis of that material or substance that gives it its essential character.
In order to find out whether the incomplete article as imported has the
essential character of the completed article, the tests to be applied would be
whether the imported article has attained the approximate shape or outline
of the finished article or part and whether it can only be used for completion
into the particular finished article.
Product: Lead pencil with an eraser at the back.
Classification: Though the above product is composite goods, the
essential character is that it is a pencil and the attachment of eraser
at the stub is only for the purpose of adding convenience to the user.
Therefore, it shall be classified as a pencil and not as an eraser.
 Rule 3(c) – Latter the better: When goods cannot be classified by reference
to (a) or (b), they shall be classified under the heading which occurs last in
numerical order among those which equally merit consideration.

ANALYSIS
If both sub-rules (a) and (b) fails to classify the goods in question, then resort
may be had to sub-rule (c), which provides that composite goods shall be
classified on the basis of the heading that occurs last in numerical order.
Relevant case law:-
Mahindra and Mahindra v. CCE 1999 (109) E.L.T. 739 (Tribunal)
[maintained by SC]
When the goods cleared by assessee were equally classifiable under the
following two headings:-

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Heading No. 87.03:- Motor cars and other vehicles principally designed for
the transport of persons.
Heading No. 87.04: Motor vehicles meant for transport of goods.
It was held that heading 87.04 occurs last and as both the headings equally
merit classification, goods shall be classified under 87.04 applying the
interpretative Rule 3(c).
 Rule 4 – Akin Rule: Goods which cannot be classified in accordance with the
above rules shall be classified under the heading appropriate to the goods to
which they are most akin.

ANALYSIS
This rule is popularly referred to as Akin rule. This rule specifies that if the
goods cannot be classified in accordance with the earlier rules, they shall be
classified under the heading in which the most akin goods are classified.
Product: Plastic films used to filter or remove the glare of the sun
light, pasted on car glass windows, window panes etc.
Classification: These goods do not find a specific entry in the
tariff schedule. However, heading 3925 30 00 covers Builder’s wares of plastic
not elsewhere specified – shutters, blinds (including Venetian blinds) and
similar articles & parts thereof. Even though the product in question is not a
builders ware, they are most akin to plastic blinds and hence it can be
classified under 3925 30 00 heading.
 Rule 5: In addition to the foregoing provisions, the following rules shall apply
in respect of goods referred to therein:
(a) Classification of cases/containers used for packaging of goods:
Camera cases, musical instrument cases, gun cases, drawing instrument
cases, necklace cases and similar containers shall be classified with a
specific article or a set of articles when of a kind normally sold therewith.
Conditions to be fulfilled:-
(i) These cases/containers are specially shaped or fitted to contain a
specific article or a set of articles.
(ii) These cases/containers are suitable for long term use and presented

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with the articles for which they are intended.

This rule does not, however, apply to containers which give the whole its
essential character.
(b) Classification of packing materials and packing containers: Subject to
the provisions of (a) above, packing materials and packing containers
presented with the goods therein shall be classified with the goods, if
they are of a kind normally used for packing such goods.
However this provision does not apply when such packing material or
packing containers are clearly suitable for repetitive use.

ANALYSIS
This rule lays down that:-
(i) Cases which are specially designed or fitted to contain a specific article
and given with the articles for which they are intended shall follow the
classification of the items which are packed.
(ii) The packing materials and containers cleared along with the goods are
classifiable with the goods.
Leather cases, which are normally supplied along with the goods,
however costly they may be, need not be treated separately for
the purpose of classification.
Exceptions to rule 5
(a) Durable containers capable of repetitive use should be classified
separately.
Gas cylinders are meant for repetitive use and therefore cannot
be classifiable along with gas.
(b) When packing material itself gives the essential character as a whole.
 Rule 6: Only Sub-Headings at the Same Level are Comparable
(i) For legal purposes, the classification of goods in the sub-headings of a
heading shall be determined according to the terms of those sub-
headings and any related sub-heading notes and, mutatis mutandis, to
the above rules, on the understanding that only sub-headings at the
same level are comparable.

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(ii) For the purposes of this rule the relative section and chapter notes also
apply, unless the context otherwise requires.
The main proposition laid down by this rule is that sub-heading at the same
level are comparable. This implies that a sub-heading can be compared only
with another sub-heading within the same heading.

4. PROJECT IMPORTS
Project Imports are the imports of machinery, instruments, and apparatus etc.,
falling under different classifications, required for initial set up of a unit or for
substantial expansion of an existing unit. In a project several different items are
required, each of which is importable at different rates of customs duties. Hence,
it becomes very complicated to make assessment for such project imports.
Therefore, one consolidated rate of customs duty has been made applicable for
all items imported under a project irrespective of the nature of the goods and
their customs classification. Further, individual exemption notification will
apply even for items grouped under the said heading of the customs tariff
liable to duty at the project rate as per recent Supreme Court judgement.
The items eligible for project import are specified in Heading 9801 of the
Customs Tariff Act, 1975. These include all items of machinery, instruments,
apparatus and appliances, components or raw materials etc. for initial setting up
of a unit or for substantial expansion of the same. The spare parts, raw material
and consumables stores upto 10% of the value of goods can be imported.
This scheme has been made applicable to Industrial Plants, Irrigation Projects,
Power Projects, Mining Projects, Projects for Oil or Mineral Exploration and other
projects as may be notified by the Central Government.
 Some judgements on classification
1. Saurashtra Chemicals v. CC 1986 (23) ELT 283 (Tri-LB) [approved by SC]
This case brings out the importance of section notes and chapter notes
in the classification of goods. The Tribunal observed that Section Notes
and Chapter Notes in the Customs Tariff are a part of the statute and
thus are relevant in the matter of classification of goods. These notes
sometimes restrict and some times expand the scope of headings. The
scheme of the Customs Tariff is to determine the coverage of headings in
the light of section notes and chapter notes. These notes, in this sense
have an overriding effect on the headings.

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2. Maestro Motors Ltd. v. CC 2004 (174) E.L.T 289 (S.C.)

In this case, the Court observed that if a tariff heading is specially mentioned
in exemption notification, the general interpretative rules would be
applicable to such exemption notification. But, if an item is specifically
mentioned without any tariff heading, then exemption would be available
even though for the purpose of classification, it may be otherwise.
3. Hewlett Packard India Sales (p) Ltd. v. CC 2007 (215) E.L.T. 484 (S.C.)
In this case the assessee was engaged in the manufacture of, and trading in,
computers including Laptops (otherwise called ‘Notebooks’) falling under
Heading 84.71 of the CTA Schedule. They imported Notebooks (Laptops)
with Hard Disc Drivers (Hard Discs, for short) preloaded with Operating
Software like Windows XP, XP Home etc. These computers were also
accompanied by separate Compact Discs (CDs) containing the same
software, which were intended to be used in the event of Hard Disc failure.
The assessee classified the software separately and claimed exemption.
The court held that without operating system like windows, the laptop
cannot work. Therefore, the laptop along with software has to be
classified as laptop and valuation to be made as one unit.

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5. TEST YOUR KNOWLEDGE

1. What is the purpose of including Interpretation Rules in Customs Tariff? Do
they form part of the Tariff Schedule? Explain the Akin Rule of interpretation.
2. Write a note on “Project Imports” under the Customs Tariff Act, 1975.
3. Explain rule 3 of the rules for Interpretation of the Customs Tariff.

6. ANSWERS/HINTS
1 The Customs Tariff has a set of six Rules for Interpretation of the Tariff
Schedule and three General Explanatory Notes. The six Rules of
Interpretation and three General Explanatory Notes are integral part of the
Tariff Schedule. The purpose of their inclusion in Customs Tariff is to
standardize the manner in which the nomenclature in the schedule is to be
interpreted so as to reduce classification disputes.
Rule 4 of the Rules of Interpretation is called as akin rule. This rule lays down
that goods which cannot be classified in accordance with rules 1, 2 and 3 of
the Rules of Interpretation shall be classified under the heading appropriate
to the goods to which they are most akin. In other words, akin rule’ is a
residual rule which is to be applied when classification is not possible by
applying any of the earlier rules. It is a rule of last resort.
2. Project Imports are the imports of machinery, instruments, and apparatus
etc., falling under different classifications, required for initial set up of a unit
or for substantial expansion of an existing unit.
Heavy customs duty on imported machinery for projects make the initial
project cost very high and project may become unviable. Hence, concept of
‘project import’ is introduced to bring machinery etc. required for initial setup
or substantial exemption at concessional customs duty.
In a project several different items are required, each of which is importable
at different rates of customs duties. Thus, this simple method is adopted, as
otherwise, classifying each machinery and its parts in different heads and
valuing them would have been cumbersome and would have delayed
clearances, which would cause demurrages. Further, individual exemption
notification will apply even for items grouped under the said heading of the
customs tariff liable to duty at the project rate as per recent Supreme Court
judgement.

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The items eligible for project import are specified in Heading 9801 of the
Customs Tariff Act, 1975. These are: all items of machinery including prime
movers, instruments, apparatus and appliances, control gear and transmission
equipment, auxiliary equipment (including those for research and
development, testing and quality control); as well as components or raw
materials for manufacture of these items and their components; required for
initial setting up of a unit or substantial expansion of a specified (1) industrial
project (2) Irrigation project (3) Power projects (4) Mining project (5) Project
for exploration of oils or other minerals and (6) Other projects as may be
notified by Central Government.
The spare parts, raw material and consumables stores upto 10% of the value
of goods can be imported.
Few of the eligible projects are:
(i) Industrial plant
(ii) Irrigation project
(iii) Power project
(iv) Mining project
(v) Oil & mineral exploration project
(vi) Other projects as notified by the Central Government
3. [Refer para 3]

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SIGNIFICANT SELECT CASES

1. Where a classification (under a Customs Tariff head) is recognized by the
Government in a notification at any point of time, can the same be made
applicable in a previous classification in the absence of any conscious
modification in the Tariff?
Keihin Penalfa Ltd. v. Commissioner of Customs 2012 (278) ELT 578 (SC)
Facts of the Case: Department contended that ‘Electronic Automatic
Regulators’ were classifiable under Chapter sub-heading 8543.89 whereas the
assessee was of the view that the aforesaid goods were classifiable under
Chapter sub-heading 9032.89. An exemption notification dated 1-3-2002
exempted the disputed goods by classifying them under chapter sub-heading
9032.89. The period of dispute, however, was prior to 01.03.2002.
Point of Dispute: The dispute was on classification of Electronic Automatic
Regulators.

Supreme Court’s Decision: The Apex Court observed that the Central
Government had issued an exemption notification dated 1-3-2002 and in the
said notification it had classified the Electronic Automatic Regulators under
Chapter sub-heading 9032.89. Since the Revenue itself had classified the
goods in dispute under Chapter sub-heading 9032.89 from 1-3-2002, the said
classification needs to be accepted for the period prior to it.

2. Whether the mobile battery charger is classifiable as an accessory of the

cell phone or as an integral part of the same?
State of Punjab v. Nokia India Private Limited 2015 (315) ELT 162 (SC)
In this case, the assessee classified the mobile battery charger as an integral part
of the main product i.e. Nokia mobile phone. It contended that cell phone could
not be operated without the charger. Further, mobile battery chargers were
provided free with the cell phone in a composite package. Therefore, it applied
the concessional rate of tax on the mobile battery charger also, as applicable on
the mobile phone. However, it also admitted that whenever it sold the chargers
separately, tax was not charged at the concessional rate.
According to Department, a battery charger was not a part of the cell phone
but merely an accessory thereof. Thus, concessional rate of tax applicable on
cell phones was not applicable to the mobile battery chargers.

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Supreme Court’s Observations: The Supreme Court decided the case in

favour of Revenue and against the assessee holding that the battery charger
is not a part of the mobile/cell phone but an accessory to it, on the basis of
the following observations:
(i) Had the charger been a part of cell phone, cell phone could not have
been operated without using the battery charger. However, as a matter
of fact, it is not required at the time of operation. Further, the battery in
the cell phone can be charged directly from the other means also like
laptop without employing the battery charger, implying thereby, that it is
nothing but an accessory to the mobile phone.
(ii) As per the information available on the website of the assessee, it had
invariably put the mobile battery charger in the category of an accessory
which means that in the common parlance also, the mobile battery
charger is understood as an accessory.
(iii) A particular model of Nokia make battery charger was compatible with
many models of Nokia mobile phones and also many models of Nokia
make battery chargers are compatible with a particular model of Nokia
mobile phone, imparting various levels of effectiveness and convenience
to the users.
(iv) Rule 3(b) of the General Rules for Interpretation of the First Schedule of
the Customs Tariff Act, 1975 can also not be applied in the assessee’s
case as merely making a composite package of cell phone and mobile
battery charger will not make it composite goods for the purpose of
interpretation of the provisions.

Supreme Court’s Decision: The Apex Court held that mobile battery charger
is an accessory to mobile phone and not an integral part of it. Further, battery
charger cannot be held to be a composite part of the cell phone, but is an
independent product which can be sold separately without selling the cell
phone.

Note: Though the above judgement has been rendered in context of VAT laws,
the principle of classification of mobile charger may hold good in case of
customs classification matter as well.
3. (i) Will the description of the goods as per the documents submitted
along with the Shipping Bill be a relevant criterion for the purpose of

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classification, if not otherwise disputed on the basis of any technical

opinion or test? (ii) Whether a separate notice is required to be issued
for payment of interest which is mandatory and automatically applies
for recovery of excess drawback?
M/s CPS Textiles P Ltd. v. Joint Secretary 2010 (255) ELT 228 (Mad.)

High Court’s Decision: The High Court held that the description of the
goods as per the documents submitted along with the Shipping Bill would be
a relevant criterion for the purpose of classification, if not otherwise disputed
on the basis of any technical opinion or test. The petitioner could not plead
that the exported goods should be classified under different headings
contrary to the description given in the invoice and the Shipping Bill which
had been assessed and cleared for export.
Further, the Court, while interpreting section 75A(2) of the Customs Act, 1962,
noted that when the claimant is liable to pay the excess amount of drawback,
he is liable to pay interest as well. The section provides for payment of
interest automatically along with excess drawback. No notice for the payment
of interest need be issued separately as the payment of interest becomes
automatic, once it is held that excess drawback has to be repaid.

The Headings cited in some of the case laws in this chapter may not co-
relate with the Headings of the present Customs Tariff as these cases
relate to an earlier point of time.

Note - Case laws given in this Chapter are solely for the
understanding of provisions relating to classification.

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