2003 (11) TMI 377 - AT - Customs

Summary

Issues: Classification of Banbury mixer under Customs Tariff

Analysis:
1. Issue: Classification of Banbury mixer under Customs Tariff.
- The question for consideration in this appeal was whether the Banbury mixer imported by the appellant should be classified in Heading 8477.80 of the Customs Tariff as claimed by the importer or Heading 8479.82 as decided by the adjudicating authority and confirmed by the Commissioner (Appeals).

2. Classification under Headings 84.77 and 84.79:
- The Counsel for the appellant argued that the Banbury mixer, used for working on rubber or plastic, should be classified under Heading 84.77, as it is more suited for a particular industry. They contended that Heading 84.79 is a residual entry and should only cover machinery for general purposes.
- The departmental representative argued that if the goods can be used by one industry (either rubber or plastic), they should fall under Heading 84.71. Since the Banbury mixer is used by both industries, it should be classified under Heading 84.79.

3. Usage and Industry Specificity:
- The Banbury mixer is predominantly used in the rubber and plastic industry, as supported by references from scientific dictionaries. It is used to make compounded rubber by mixing natural or synthetic rubber with chemicals. The mixer is exclusively used in the rubber and plastic industries.

4. Interpretation of Headings:
- Heading 84.77 covers machinery for working rubber or plastics, and the action of the Banbury mixer clearly indicates its function in working rubber. Making compounded rubber is considered manufacturing and is separately classifiable in the Central Excise and Customs tariff.
- The argument that machinery should be used in only one industry (either rubber or plastic) to fall under Heading 8477 was rejected. The Explanatory Notes under Heading 8479.82 mention machinery designed for "particular goods or industries," indicating flexibility in usage across industries.

5. Decision and Conclusion:
- The Tribunal found Heading 84.77 more appropriate for classifying the Banbury mixer used by the appellant. Therefore, the appeal was allowed, and the impugned order was set aside, granting consequential relief if permitted by law.

This detailed analysis of the judgment highlights the arguments presented, the interpretation of relevant headings, the specific usage of the Banbury mixer, and the ultimate decision of the Appellate Tribunal regarding its classification under the Customs Tariff.