2008 (9) TMI 643 - AT - Customs

Summary

Issues: Classification of imported goods under Chapter 69 or 84.

The judgment revolves around the classification of imported goods, specifically the Focus four Colour 250 Flexographic Press with Ceramic Anilox Rolls, under Chapter 69 or Chapter 84 of the Central Excise Tariff Act, 1975. The appellants argued that the goods should be classified under Heading 84.17(1) as part of machinery, citing the Apex Court decision in Grasim Industries. They contended that the Tribunal's earlier order had erroneously classified the goods under Chapter 69. The key point of contention was whether the Ceramic Anilox Rolls should be considered part of the printing machine or classified separately under Chapter 69 as articles of ceramic.

The Tribunal, comprising Ms. Jyoti Balasundaram and Shri A.K. Srivastava, delved into the matter. The applicants claimed that a mistake apparent from the record existed in the Tribunal's final order, as the Apex Court judgment in Grasim Industries was not considered during the appeal hearing. They relied on the principle established in the Hindustan Lever Ltd case, arguing that failure to consider the Apex Court judgment constituted an error. However, the Tribunal dismissed this argument, emphasizing that the Apex Court judgment pertained to different goods and the classification under Note 1(a) of Chapter 84 was not applicable in the current scenario. The Tribunal highlighted that the imported goods, being the Focus four Colour 250 Flexographic Press with Ceramic Anilox Rolls, were correctly classified under Chapter 69 due to the specific nature of the Ceramic Anilox Rolls as articles of ceramic.

In reaching its decision, the Tribunal analyzed the relevant provisions of the Central Excise Tariff Act, 1975. It differentiated between Note 1(a) and Note 1(b) of Chapter 84 to determine the appropriate classification for the imported goods. The Tribunal concluded that the Ceramic Anilox Rolls, being articles of ceramic, fell under Chapter 69 and were excluded from coverage under Chapter 84. Therefore, the Tribunal rejected the application, affirming the initial classification of the goods under Chapter 69 as per the specific details of the imported items. The judgment elucidates the importance of considering the specific characteristics and composition of goods for accurate classification under the tariff provisions.