2007 (2) TMI 469 - AT - Customs

Summary

Issues:
Classification of imported machinery under Notification No. 16/2000-Cus.

Detailed Analysis:

Issue: Classification of imported machinery under Notification No. 16/2000-Cus.
The appeal involved the classification of imported machinery under Notification No. 16/2000-Cus. The appellant imported machinery to manufacture crowns & caps and warehoused them under specific Bills of Entry. The lower appellate authority found that the imported machines did not qualify for the concessional rate under Notification No. 16/2000 as they were classified under specific headings such as punching machines, shearing machines, and printing press. The Commissioner relied on a previous Tribunal decision to support this classification approach. The appellants argued that the imported goods should be classified as a single plant under Chapter Heading 8479.89 and be eligible for the Notification benefit. They cited a case law to support their argument. The Revenue supported the Commissioner's decision.

The Tribunal analyzed the case and found that the imported machinery, although individually classified correctly under specific headings, should have been assessed as a single plant under Chapter Heading 8479.89 for the purpose of Notification No. 16/2000. The Tribunal referred to Section Note 4 of Section XVI, stating that a combination of machines intended for a specific function should be classified under the appropriate heading. As the machinery for production of 'caps and crowns' was not specified under any other heading, it should be classified under 8479.89. The Tribunal concluded that the Commissioner's classification was incorrect. However, due to the appellants not following the prescribed procedure at the time of import and clearance, the original classification could not be altered at a later stage. The Tribunal upheld the impugned order due to the lack of proper declaration and presentation of the goods as a complete plant during clearance.

In conclusion, the Tribunal found that the imported machinery should have been classified as a single plant under Chapter Heading 8479.89 for the Notification benefit. However, due to procedural shortcomings by the appellants, the original classification could not be changed at a later stage. The Tribunal dismissed the appeal, sustaining the impugned order.

This detailed analysis highlights the classification issues surrounding the imported machinery under Notification No. 16/2000-Cus, the arguments presented by both parties, the legal principles applied by the Tribunal, and the final decision reached based on the procedural and classification aspects of the case.