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Issues: Revenue appeal against classification of automatic spraying machine under Heading 8424 and benefit of Notification 43/78-Cus.
Classification of Automatic Spraying Machine: The appeal was against the Order-in-Appeal upholding the classification of an automatic spraying machine under Heading 8424, granting the benefit of Notification 43/78-Cus. The appellant argued that the machine should be assessed based on the total value for the complete machine, including conveyors, dryers, and coolers. They contended that the conveyors, dryers, and coolers were integral parts of the spraying line as the machine was fully automatic. The Commissioner's order was based on the machine being a single integral line for painting leather, falling under Heading 8424. The appellant also cited similar goods cleared previously with the benefit of the notification. The Commissioner's order was upheld, emphasizing the machine's fully automatic nature and the integrated role of conveyors, dryers, and coolers in the spraying line. Interpretation of Optional Accessories: The Revenue argued that conveyors, dryers, and coolers were optional accessories based on the catalogue and were not compulsorily supplied with the main machine. They contended that without break-up details, ad hoc values were used, making the assessee ineligible for the notification benefit. However, the Commissioner found that the conveyors, dryers, and coolers were essential components of the fully automatic spraying machine. The impugned order was upheld, highlighting the machine's automatic nature and the integrated function of conveyors, dryers, and coolers in the spraying line. Judgment Analysis: The Tribunal examined the impugned order and the catalogue, noting the Commissioner's reasoned decision regarding the automatic nature of the machine and the integrated role of conveyors, dryers, and coolers in the spraying line. The Commissioner's reference to past practices in the Customs House and the extension of notification benefits in similar cases was considered. The Tribunal found no flaws in the impugned order, upholding the classification of the machine under Heading 8424 and the availability of benefits under Notification 43/78-Cus. The Revenue appeal was rejected based on the machine being a single integral line for painting leather, as established by the description of goods and literature provided.
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