1984 (8) TMI 323 - AT - Customs

Summary

Issues: Classification of imported 'As is machines' under Heading 72(b)-ICT or Heading 73-ICT and chargeability to additional duty (countervailing duty) as Office Machines under Item 33D of the Central Excise Tariff.

In this case, the appellants imported Data Processing Machines in a disused condition under Import Licences on 'As is condition' for salvaging usable parts for their manufacturing program in India. The dispute revolved around the classification of these machines under Heading 72(b)-ICT as claimed by the appellants or Heading 73-ICT as held by the lower authorities. The lower authorities had classified the goods under Heading 73-ICT and held them liable for countervailing duty under Tariff Item 33D of the Central Excise Tariff as Office Machines. The appellants argued for classification under ICT 72(b), 72(3), or 72(6) based on various government orders, tariff advice, and legal precedents. The Department did not contest the appellants' claim. The Tribunal accepted the appellants' classification under Heading 72(b), 72(3), or 72(6) based on relevant precedents and held that the goods were not chargeable to additional duty under T.I. 33D, in line with the appellants' argument supported by legal precedents.

The Tribunal noted that the appellants had relied on government orders, tariff advice, legal precedents, and their own case to support their claim for classification under Heading 72(b), 72(3), or 72(6) instead of Heading 73-ICT. The Department did not provide any counterarguments to the appellants' claim. The Tribunal found that the appellants' claim for classification under the specified headings was supported by legal precedents and, therefore, accepted their classification argument.

Regarding the chargeability of additional duty (countervailing duty) under Tariff Item 33D of the Central Excise Tariff, the Tribunal agreed with the appellants' argument that the goods were not classifiable under T.I. 33D based on legal precedents cited. As a result, the Tribunal accepted the appellants' claim that the goods were not chargeable to additional duty (countervailing duty) and modified the impugned orders accordingly. The appeals were allowed in favor of the appellants, and the goods were classified under Heading 72(b), 72(3), or 72(6), as applicable, without being subject to additional duty under T.I. 33D.