2005 (9) TMI 336 - AT - Customs

Summary

Issues:
Classification of imported stainless steel band ironing band under Customs Tariff heading 8453.90 vs. 7314.19.

Issue 1: Classification Dispute
The appeal challenged the classification of the imported stainless steel band ironing band under Heading 7314.19 by the department, while the appellant claimed it should be classified under Customs Tariff heading 8453.90 as part of the rotary ironing and plating machine. The Commissioner of Customs (Appeals) relied on Note 1 of Section XVI, stating that endless belts of metal wire or strip are excluded from machinery parts classification. The appellant contended that the imported item was distinct from endless belts, not intended for power transmission but for heat transfer in ironing machines.

Issue 2: Interpretation of Technical Definitions
The consultant argued that the Commissioner (Appeals) erred in considering the imported item as a strip based on the technical definition, as the band's width exceeded the limit for a strip. The consultant emphasized that the imported band was specifically designed for rotary ironing and plating machines, supporting its classification under CSH 8453.90.

Issue 3: Application of Section XVI Notes
The Tribunal analyzed the description of the imported item as "stainless steel band ironing band endless, chrome plated, mirror finished" and concluded that it was not an endless belt of metal wire or strip. The Tribunal noted that the imported band was essential for the functioning of the ironing machine, similar to spare parts or accessories, and classified it as parts of machinery under Heading 84.53, specifically 84.53.90, for preparing tanneries or working hides and skins. The Tribunal found that the imported band was not excluded under Note 1 of Section XVI and allowed the appeal with consequential relief.

In conclusion, the Tribunal ruled in favor of the appellant, determining that the imported stainless steel band ironing band should be classified under Customs Tariff heading 8453.90 as parts of the rotary ironing and plating machine for leather industry, rejecting the department's classification under Heading 7314.19. The Tribunal's decision was based on the interpretation of technical definitions, application of Section XVI notes, and the specific function and design of the imported item for the ironing and plating machine.