1983 (5) TMI 231 - AT - Customs

Summary

Issues:
Re-assessment of Dandy Roll Covers imported under Heading 84.31 of the Customs Tariff Act, 1975 as components of paper making machinery. Classification dispute based on whether the Dandy Roll Covers should be classified under Heading 74.11 or Heading 84.31 of the Customs Tariff Act. Interpretation of Note 1(h) to Section XVI of the Customs Tariff regarding endless belts of metal wire or strip. Consistency in assessment by the Customs House for similar goods under different headings.

Analysis:
The appellants sought re-assessment of Dandy Roll Covers imported by them under Heading 84.31 of the Customs Tariff Act, claiming them as components of paper making machinery. The lower authorities rejected this claim, equating the Dandy Roll Covers to endless bands of woven wire gauze used in fourdrinier paper making machines classified under Heading 74.11. The Department argued that Note 1(h) to Section XVI excluded endless belts of metal wire or strip from Section XVI, placing them under Section XV, and contended that the Dandy Roll Covers, being endless, should also be excluded from Section XVI. The appellants argued that Dandy Roll Covers are specifically shaped, diagonally seamed, individually made to suit particular Dandy Rolls, and essential for paper making, unlike the endless mesh wires of paper machine wires. They highlighted the unique manufacturing technique of Dandy Roll Covers, increasing their value significantly, and emphasized the distinct pricing basis for Dandy Roll Covers compared to paper machine wires. The appellants provided a catalogue and Bill of Entry to support their argument.

During the hearing, the appellants reiterated their argument and presented Bills of Entry for identical goods previously assessed under Heading 84.31 by the same Customs House. The description of the goods in the Bills of Entry confirmed that the Dandy Roll Covers were specially designed for individual Dandy Rolls, distinct in construction, design, and use from fourdrinier wires. The Tribunal noted that just because both were endless did not warrant equating them. The Tribunal found the Department's analogy regarding endless belts of metal wire or strip inapplicable to Dandy Roll Covers due to their unique characteristics and specific function in paper making. The Tribunal questioned the inconsistency in assessment by the Customs House, emphasizing that the subject Dandy Roll Covers were components of paper making machinery falling under Heading 84.31, not under Heading 74.09/19 for miscellaneous articles of copper. Consequently, the Tribunal allowed the appeal, providing consequential relief to the appellants.