Widia (i) Ltd. Vs. Commissioner of Customs - Court Judgment

Excerpt:
1. the issue in the appeal relates to the classification of the steel tubes imported by the appellants which have been assessed by the learned lower authority under tariff heading 73.17/19(1)(i) read with notification 38/84. the appellants have sought for the classification of the same under tariff heading 73.17/19(1)(ii). tariff entries 73.17/19 is reproduced below for convenience of reference : (iv) tubes and pipes sheathed or lined with corrosion resisting material, such as glass, rubber and plastic 2. the learned representative of the appellants has pleaded that the tubes imported by them are used for the manufacture of drill bits of a special kind to facilitate the drilling operations requiring a longer penetration. he has pleaded that the pieces of the tubes imported function as a shank at the one end of which the drill bit is fixed while at other end the arrangement for fixing the drill piece into the machines is provided. he has pleaded that inasmuch as the tariff heading 73.17/19(1)(ii) covers drilling tubes and pipes the appellants goods should be taken to be drill tubes or blanks for the reason that the same are used in the drilling operations. he has pleaded that in the tariff the scope of the term drilling tubes has not been amplified and, therefore, this should be given a wider meaning.3. the learned sdr for the department, however, pleaded that the drilling tubes have been specified as a category apart from the general run of tubes governed under tariff heading 73.17/19 and these have to be only such tubes as are normally considered in the trade for use in drilling operations. he has pleaded, the tubes covered under this heading will be only such as participating in the drilling operations.in the present case, he pleaded that the tube functions only as a shank and the drill bit is attached to it and apart from providing a length for the drill bit, it does not provide any function with reference to the purpose for which the drilling is done.4. in a rejoinder, the learned representative of the appellants has pleaded that through the hallow portion of the tube in the case of operations carried out indepth, the coolant is poured at very high pressure to facilitate the cooling of the bit and on account of the high pressure provided, the small pieces of metal which get released by drilling are also pushed out.5. we have considered the pleas made by both the sides. we observe that the term drill pipe as set out in the mcgraw hill dictionary of scientific and technical terms, is defined as under : a pipe used for driving a revolving drill bit, used especially in drilling wells; consists of a casing within which tubing is run to conduct oil or gas to ground level; drilling mud flows in the annular space between casing and tubing during the drilling operation.6. the term drilling operations as understood in the trade are such of those which are used for prospering oil or gas and may be even for water. in this background, the appellants' goods do not pass the muster of the drilling pipes as understood in the technical literature. the appellants have not been able to show that their pipes are known in the trade as drilling pipes. their claim to the assessment as claimed by them is only for the reason that since the tube is specially designed and intended for use with the drill, it should be treated as a drilling tube. we are afraid, just because the tube is used as a part of the drill bit, could not make it a drilling tube. drilling tube though not defined in the tariff has to be understood as the one which is recognised so by those who are engaged in the drilling operations. the technical dictionary makes the position clear in this regard.7. we, therefore, are of the view that the appellant's claim is not sustainable and we, therefore, dismiss the appeals.

Judgment:
1. The issue in the appeal relates to the classification of the steel tubes imported by the appellants which have been assessed by the learned lower authority under Tariff Heading 73.17/19(1)(i) read with Notification 38/84. The appellants have sought for the classification of the same under Tariff Heading 73.17/19(1)(ii). Tariff entries 73.17/19 is reproduced below for convenience of reference : (iv) Tubes and pipes sheathed or lined with corrosion resisting material, such as glass, rubber and plastic 2. The learned representative of the appellants has pleaded that the tubes imported by them are used for the manufacture of drill bits of a special kind to facilitate the drilling operations requiring a longer penetration. He has pleaded that the pieces of the tubes imported function as a shank at the one end of which the drill bit is fixed while at other end the arrangement for fixing the drill piece into the machines is provided. He has pleaded that inasmuch as the Tariff Heading 73.17/19(1)(ii) covers drilling tubes and pipes the appellants goods should be taken to be drill tubes or blanks for the reason that the same are used in the drilling operations. He has pleaded that in the Tariff the scope of the term drilling tubes has not been amplified and, therefore, this should be given a wider meaning.

3. The learned SDR for the department, however, pleaded that the drilling tubes have been specified as a category apart from the general run of tubes governed under Tariff Heading 73.17/19 and these have to be only such tubes as are normally considered in the trade for use in drilling operations. He has pleaded, the tubes covered under this heading will be only such as participating in the drilling operations.

In the present case, he pleaded that the tube functions only as a shank and the drill bit is attached to it and apart from providing a length for the drill bit, it does not provide any function with reference to the purpose for which the drilling is done.

4. In a rejoinder, the learned representative of the appellants has pleaded that through the hallow portion of the tube in the case of operations carried out indepth, the coolant is poured at very high pressure to facilitate the cooling of the bit and on account of the high pressure provided, the small pieces of metal which get released by drilling are also pushed out.

5. We have considered the pleas made by both the sides. We observe that the term drill pipe as set out in the McGraw Hill Dictionary of Scientific and Technical Terms, is defined as under : A pipe used for driving a revolving drill bit, used especially in drilling wells; consists of a casing within which tubing is run to conduct oil or gas to ground level; drilling mud flows in the annular space between casing and tubing during the drilling operation.

6. The term drilling operations as understood in the trade are such of those which are used for prospering oil or gas and may be even for water. In this background, the appellants' goods do not pass the muster of the drilling pipes as understood in the technical literature. The appellants have not been able to show that their pipes are known in the trade as drilling pipes. Their claim to the assessment as claimed by them is only for the reason that since the tube is specially designed and intended for use with the drill, it should be treated as a drilling tube. We are afraid, just because the tube is used as a part of the drill bit, could not make it a drilling tube. Drilling tube though not defined in the Tariff has to be understood as the one which is recognised so by those who are engaged in the drilling operations. The Technical Dictionary makes the position clear in this regard.

7. We, therefore, are of the view that the appellant's claim is not sustainable and we, therefore, dismiss the appeals.