2017 (4) TMI 419 - AT - Customs

Classification of the technical documents which were imported by the appellants for the use in setting up spin drawing winding machine - It is the case of the appellants that the said drawings are correctly classifiable under chapter heading number 4911 1090 while it is the case of the revenue that the drawings are correctly classifiable under chapter heading number 8445 40 - Held that - the value of the documents were already considered and included by the revenue for levy and discharge of Customs duty. These documents were only drawing required for assembly of the machine, the same cannot be by any stretch of imagination considered as parts/ components of the machine and merit classification under 8445 - the impugned order classifying the technical documents under chapter 84 is unsustainable The technical documents are correctly classifiable under chapter 49 - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of technical documents imported for use in setting up a machine under chapter heading number 4911 1090 or 8445 40.

Analysis:
1. The appeal challenged the Order-in-Original passed by the Commissioner of Customs regarding the classification of technical documents imported for setting up a machine.
2. The main issue was whether the documents should be classified under chapter heading number 4911 1090 as claimed by the appellants or under chapter heading number 8445 40 as argued by the revenue.
3. The Tribunal found that the adjudicating authority classified the documents under chapter heading number 8445 40 solely based on them being related to a machine under chapter 84, which was deemed unsustainable for multiple reasons.
4. The bill of entry clearly identified the documents as technical and essential for the machine's installation and functioning, not as parts/components of the machine.
5. Referring to a similar case, the Tribunal emphasized that designs and drawings imported for machinery should be classified under chapter 49, supporting the appellants' stance.
6. The Tribunal cited a Supreme Court decision dismissing an appeal by the revenue, upholding the classification of such technical documents under chapter 49.
7. Consequently, the Tribunal held that the impugned order classifying the technical documents under chapter 84 was incorrect, and they should be classified under chapter 49, leading to the setting aside of confiscation and penalties imposed.
8. The impugned order was overturned, and the appeal was allowed based on the authoritative judicial pronouncements and legal precedents cited.

This detailed analysis of the judgment highlights the critical issues, arguments presented, legal reasoning, and the final decision reached by the Appellate Tribunal CESTAT MUMBAI regarding the classification of technical documents for setting up a machine under specific chapter headings.