2005 (3) TMI 553 - AT - Customs

Summary

Issues: Classification of Uster Ring Data and Uster Classimat under Heading 85.18/27 or Heading 90.16(2)

Classification under Heading 85.18/27:
The Revenue argued that Uster Ring Data and Uster Classimat should be classified under Heading 85.18/27, contrary to the Commissioner's classification under Heading 90.16(2). The Tribunal reviewed the records and considered both sides of the argument. The case was previously remanded due to inconsistent classification by Revenue authorities for the same item and the lack of consideration of technical literature. The Commissioner (Appeals) extensively analyzed the machines' functions, emphasizing their specific use in the textile industry. The technical literature highlighted the exclusive use of these machines in the textile industry. Heading 85.18/27 pertains to electrical items, not specific machines for other industries, while Heading 90.16 includes checking instruments. The machines in question were deemed essential for ensuring yarn quality by capturing and transmitting yarn features to control equipment. The Commissioner's classification was upheld as appropriate, and the appeal was dismissed for lacking merit.

Conclusion:
The judgment affirmed the classification of Uster Ring Data and Uster Classimat under Heading 90.16(2) based on their role as checking instruments essential for maintaining yarn quality in the textile industry, as established by technical literature and the Commissioner's detailed analysis.