1983 (9) TMI 272 - AT - Customs

Summary

Issues:
1. Classification of Cloth Drilling Machine and Cloth Cutting Machine under the Customs Tariff Act.
2. Rejection of reassessment application by the Asst. Collector of Customs and the Collector of Customs (Appeal).
3. Applicability of exemption Notifications No. 41 and 46 dated 1-3-1978.
4. Benefit of Notification No. 41-Cus. for automatic machines.
5. Benefit of Notification No. 46-Cus. for Cloth Cutting Machine.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of a Cloth Drilling Machine and a Cloth Cutting Machine under the Customs Tariff Act. The appellants imported these machines and sought reassessment under different headings. The Asst. Collector of Customs, Bombay, rejected the claim, a decision upheld by the Collector of Customs (Appeal), Bombay. The appellants contended that the Cloth Drilling Machine was incorrectly classified under Heading 82.05 as tools, emphasizing its importance in the Garments industry. They also argued for the Cloth Cutting Machine's classification under Heading 84.40(1) without countervailing duty, citing exemption Notifications No. 41 and 46 dated 1-3-1978.

During the hearing, no representation was made for the appellants, while the respondent Collector was represented by Shri M. Chatterjee. The Tribunal noted the appellants' request for a hearing in Bombay, which was not feasible due to jurisdictional reasons. The appellants were given the option to submit written arguments, but none were received. In the absence of the appellants, Shri Chatterjee defended the lower authorities' orders.

The Tribunal analyzed the classification of the Cloth Drilling Machine under Heading 82.05, which covers power-operated hand tools for drilling. The Appellate Collector of Customs affirmed the correct assessment under this heading, determining it as a tool for working by hand with a self-contained electric motor. Regarding the Cloth Cutting Machine, the Tribunal found no evidence to dispute the Appellate Collector's decision that it did not fall under Heading 84.40(1) as a fabric cutting machine.

The Tribunal further examined the applicability of exemption Notifications No. 41 and 46 dated 1-3-1978. Notification No. 41-Cus. applied to automatic machines, which the lower authorities found the machine in question did not qualify as. As for Notification No. 46-Cus., the Tribunal noted insufficient information provided by the appellants regarding the specific model of the Cloth Cutting Machine, leading to the dismissal of the claim due to lack of supporting material.

Ultimately, the Tribunal dismissed the appeal, upholding the lower authorities' classification of the machines and the inapplicability of the exemption notifications based on the evidence presented during the proceedings.