2000 (2) TMI 143 - AT - Customs

Summary

Issues:
Classification of Bulk Butter Packing Machine under sub-Heading 8434.20 or Heading 84.22 of the Customs Tariff Act.

Analysis:
The appeal involved a dispute regarding the classification of a Bulk Butter Packing Machine imported by M/s Dairy Development Commission, Maharashtra. The question was whether the machine should be classified under sub-Heading 8434.20 as claimed by the Appellants or under Heading 84.22 as ordered by the Commissioner of Customs. The Appellants argued that the machine should be classified under Heading 84.34 as it is specifically designed for bulk butter packing and cannot be used for any other purpose. On the other hand, the Departmental Representative contended that the machine falls under Heading 84.22 as it is primarily meant for filling containers after molding them.

The Departmental Representative highlighted that the impugned machine molds butter into commercial shapes and fills containers progressively, indicating its classification under Heading 84.22. Reference was made to the H.S.N. Explanatory Notes under Heading 84.22, which state that machines performing additional operations incidental to packing are classified under this Heading. The argument emphasized the machine's primary function of filling containers after molding, aligning with the classification under Heading 84.22.

Upon considering the submissions and perusing the records, the Tribunal noted that the machine's purpose was indeed for packing butter. The relevant Headings under consideration were analyzed, with Heading 84.34 covering machines for manufacturing butter or cheese, excluding those that also wrap or weigh the product (Heading 84.22). The Explanatory Notes clarified that Heading 84.22 encompasses machinery for packing, closing, sealing, or labeling containers, including packing machinery. The Tribunal observed that the impugned machine's secondary function of molding butter into blocks without altering its essential character fell within the scope of Heading 84.22.

The Tribunal found that the Appellants themselves described the machine as a butter packing machinery in their Memorandum of Appeals, supporting its classification under Heading 84.22. Consequently, the Tribunal upheld the Commissioner's classification under Heading 84.22 of the Customs Tariff Act, dismissing the appeal. The decision was made after due consideration of the arguments presented and the relevant provisions governing the classification of the Bulk Butter Packing Machine.