2006 (1) TMI 350 - AT - Customs

Summary

Issues:
1. Classification of parts of Paper Making Machinery under Notification No. 156/86-Cus.
2. Benefit eligibility under the Notification for imported blades.

Issue 1: Classification of parts of Paper Making Machinery under Notification No. 156/86-Cus.
The case involved the classification of parts of Paper Making Machinery under Heading No. 84.39 for the purpose of availing benefits under Notification No. 156/86-Cus. The Commissioner, after considering the Tribunal's judgment in the assessee's own case, allowed the benefit of the Notification as the parts fell under the specified Heading. The Commissioner noted that the imported blades were not one-time capital items but were periodically imported. The Revenue challenged the order due to the Deputy Commissioner's failure to follow the Tribunal ruling, causing the Commissioner's specific remark on this issue.

Issue 2: Benefit eligibility under the Notification for imported blades
The Revenue contended that the imported blades should be classified under Heading No. 8211.94, not mentioned in the Notification, thus making them ineligible for the benefits. However, the Counsel argued that the issue was previously settled in the Tribunal's judgment, which was applicable to the current case. Referring to other judgments, including CC, Chennai v. Andhra Pradesh Paper Mills Ltd., it was emphasized that parts used in paper making machines were eligible for the Notification's benefits. The Tribunal, after careful consideration of previous judgments, affirmed that the benefit extended to doctor blades as spares of paper machines, and the benefit applied to parts of Paper Making Machinery, paper pulp, paper board, and cutting machines. The Tribunal distinguished other cases cited by the Revenue, such as Tata Engg. & Locomotive Co. Ltd. and Automotive Axles Ltd., as not relevant to the current case, leading to the rejection of the appeal.

In conclusion, the Tribunal upheld the Commissioner's decision, stating that the benefit of the Notification was rightly applied based on previous judgments and the specific classification of the parts under Heading No. 84.39. The appeal by the Revenue was dismissed, emphasizing the applicability of the Tribunal's previous rulings in similar cases.