2017 (9) TMI 65 - AT - Customs

Classification of goods - Tail Brush FIRC - Parts of Tunnel Boring Machine (TBM) - whether classified under CTH 8431 43 90 or under CTH 9603? - Held that - Chapter 8431 covers the parts which are suitable for use solely or principally with the machinery of headings No. 8425 to 8430; whereas brooms and brushes (including brushes, which are part of machines and appliances in general). A reading of Chapter 9603 makes it clear that it covers normal brushes which could also be part of certain machines and appliances - there is no dispute that the item imported is specifically suitable for use solely or principally with the Tunnel Boring Machine (TBM). The respondent has specifically mentioned that the item is customised only for Tunnel Boring Machine (TBM) having the specific purpose of shielding the flow into the TBM. Further, it appears that TBM would be covered under Heading 8430 and when the item imported is solely or principally for use as part the TBM, there should not be any doubt that it would be covered under Chapter Heading 8431 and under its sub-headings 8431 4310 or 8431 43 90. The right classification for the subject item would be 84314390 only - appeal dismissed - decided against appellant-Revenue.

Summary

Issues:
Classification of "Tail Brush FIRC" under Chapter Heading 8431 43 90 of the Customs Tariff or Chapter 9603 50 00.

Analysis:
1. The Revenue argued that the goods in question, "Tail Brush FIRC," should be classified under Chapter 9603 as brushes constituting parts of machines. They relied on specific descriptions in the Customs Tariff and Section Note 1(O) of Section XVI of HSN, which excludes brushes used as parts of machines from Chapter 84.

2. The respondent contended that the "Tail Brush FIRC" is a specific part of the Tail Shield of the Tunnel Boring Machine (TBM) and serves the purpose of shielding the flow into the TBM. They argued that the functional character of the Tail Brush is shielding, which aligns it with Chapter 8431 for parts suitable for use with machinery.

3. The Tribunal analyzed the descriptions of Chapter 9603 and Chapter 8431 along with their relevant sub-headings. It noted that Chapter 8431 covers parts suitable for use with specific machinery, while Chapter 9603 includes brushes that can be part of various machines. The Tribunal emphasized that the imported item was customized solely for use with the TBM, indicating its classification under Chapter 8431.

4. Considering the arguments presented, the Tribunal concluded that the "Tail Brush FIRC" was specifically designed for the TBM and should be classified under Chapter Heading 8431 43 90. The Tribunal rejected the Revenue's classification under Chapter 9603 50 00, as the item was primarily intended for use with the TBM, falling under Chapter Heading 8430.

5. Therefore, the Tribunal upheld the classification of the "Tail Brush FIRC" under Chapter Heading 8431 43 90 and dismissed the appeal by the Revenue for lacking merit. The judgment was pronounced on 27.07.2017.