1986 (12) TMI 132 - AT - Customs

Summary

Issues:
Classification of imported machine for customs duty under Tariff Heading 84.59 (1) or 84.59 (2) or 84.45/48.

Analysis:
1. The dispute in this case revolves around the classification of a "Special purpose complex machine" for customs duty. The Assistant Collector classified the machine under Tariff Heading 84.59 (1), while the Collector (Appeals) suggested classification under Heading 84.59 (2) or 84.45/48. The Collector of Customs, Bombay filed an appeal against the Collector (Appeals) decision.

2. The Appellant's argument emphasized that the imported machine's functions do not align with the definition of machine tools under Tariff Heading 84.45/48. The machine is designed for plugging carburettor body holes and does not perform functions typical of machine tools for working metal. The machine is considered a composite machine under Tariff Heading 84.59 based on Section Note 3 and Chapter Note 5 of the Customs Tariff Act.

3. The Respondent argued that the machine's functions, including plugging holes, trimming lead shots, and checking airtightness, classify it as a machine-tool working on metal under Heading 84.59 (2) or 84.45/48. Reference was made to a previous Tribunal decision for a similar classification scenario.

4. Upon review, the Tribunal found discrepancies between the machine's description in the bill of entry and the actual machine submitted by the Respondents. The machine's primary function of plugging carburettor body holes does not constitute "treating metal" under Heading 84.59 (2). The Tribunal concluded that the machine should be classified under Heading 84.59 (1) as per the Assistant Collector's decision.

5. The Tribunal rejected the application of a previous decision cited by the Respondents, as the principal function of the machine in that case differed from the current scenario. The burden of proof for classification was deemed to have been met by the Assistant Collector's Order-in-original.

6. Ultimately, the Tribunal set aside the Collector (Appeals) decision, restored the Assistant Collector's Order-in-original, and allowed the appeal filed by the Collector of Customs, classifying the machine under Heading 84.59 (1) for customs duty purposes.