ORDER
S.K. Bhatnagar, Vice President
1. This is an appeal against the order of the Collector (Appeals), Bombay.
2. Learned representative of the appellants stated that they had imported stainless steel welding electrodes. These were classified by the Department under Heading 73.33/40(2) as other articles of iron and steel. They had, therefore, subsequently filed a claim for refund of duty on the ground that these were correctly classifiable under 83.01/15(3) which specifically covers electrodes of base metal.
3. The Assistant Collector, however, rejected their claim on the ground that this Heading covers electrodes of base metal or of metal carbides and not stainless steel electrodes of alloy steel.
4. The Collector (Appeals) also rejected their petition on the ground that the goods are made of stainless steel which is alloy steel and not base metal.
5. It was their submission that both the authorities below have erred in coming to this conclusion as iron and steel are base metals and stainless steel is an alloy of base metal. In this connection, he would draw attention to Section Notes 3 & 4 of Section XV of HSN and the general Explanatory Notes (A) regarding ‘Alloys of, base metal.’
6. This Section Note 3 states that “through out the nomenclature, the expression base metal means iron and steel … ” and the Explanatory Notes further states that any reference in Chapter 82 or 83 or elsewhere to base metal includes alloys of base metal.
7. Learned DR stated that during the relevant period Customs Tariff was not aligned with HSN but with CCCN, the importation being that of November, 1985.
8. However, he agrees that the stainless steel is an alloy of base metal. He would, however, draw attention to the order of the authorities below in which the Department has taken the view that electrodes of stainless steel were classifiable under Heading 73.33/40 as they were articles made of stainless steel.
9. We have considered the above submissions. We observe that the learned DR is correct to the extent of pointing out that during the relevant period, Customs Tariff was aligned with CCCN and not HSN. However, the Section Notes 3 and 4 and the General Explanatory Note (A) regarding ‘Base metals and alloys’ of base metal as given in HSN and cited by the learned representative of the appellants are essentially the same even in CCCN. In respect of the aspects with which we are concerned Section Note 3 to Section XV which is relevant covers classification of alloys other than ferro alloys and master alloys as defined in Chapters 73 and 74. Furthermore, admittedly stainless steel is an alloy of a type covered by Heading 73.15. Therefore, Section Notes 3 and 4 of CCCN are relevant. Section Note 3 states inter alia that “An alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals.” Section Note 4 says that “unless the context otherwise requires, a reference in this nomenclature to a base metal is to be taken to include a reference to alloys which by virtue of Note 3 above, are to be classified as alloys of that metal.”
10. In view of this position, the goods are required to be classified under Chapter 83. Since the Heading 83.01/15(3) specifically covers electrodes of base metal, the stainless steel electrodes of alloy steel are rightly classifiable under this Heading. The appeal is, therefore, accepted.