2008 (11) TMI 461 - AT - Customs

Summary

Issues:
Classification of imported extrusion dies under Chapter Heading 8480.7900 for exemption under Notification 85/2004 denied by lower authorities.

Analysis:
The appellant imported extrusion dies and claimed exemption under Sl. No. 65 of Notification 85/2004, classifying them under Chapter Heading 8480.7900. Both lower authorities denied the exemption, classifying the goods under Chapter Heading 8477.9000.

The appellant argued that the goods should be classified under Chapter Heading 8480 as moulds, not under Chapter Heading 8477 as parts of extruders. They contended that dies are synonymous with moulds and referred to the HSN Explanatory Note to support their claim. They emphasized that only stamping dies are excluded from the purview of moulds, and as per Section 2(a) of Section XVI, parts included in Heading 84 should be classified accordingly.

The Departmental Representative (DR) countered, stating that extrusion dies and moulds are not synonymous. He explained the extrusion process and highlighted that dies do not retain material but push it through, unlike moulds. He argued that dies should be classified under Chapter Heading 8477.90 as parts of extruders, not as moulds under Chapter Heading 8480.

The Tribunal analyzed the submissions and found that the essential function of a mould is to retain material in a predetermined shape while it sets, a function not performed by dies which only impart a uniform cross-section. Relying on precedent, the Tribunal upheld the classification of dies under Chapter Heading 8477.90, dismissing the appeal and affirming the order of the Commissioner (Appeals).

In conclusion, the Tribunal held that extrusion dies should be classified under Chapter Heading 8477.90 as parts of extruders, not as moulds under Chapter Heading 8480, based on the distinct functions of moulds and dies in retaining material. The appeal was dismissed, and the lower authorities' decision was upheld.