1987 (2) TMI 244 - AT - Customs

Summary

Issues Involved:
1. Applicability of Notification No. 40/78-Cus to the imported machines.
2. Interpretation of the term "automatic multi-station nut making machine".
3. Consideration of expert opinions and licensing interpretations in customs notifications.

Summary:

1. Applicability of Notification No. 40/78-Cus to the imported machines:
The appellants imported two machines, a Blanking Press (BP) and a Finishing Press (FP), under a single Bill of Entry. The Assistant Collector denied the benefit of Notification No. 40/78-Cus to the BP, stating it does not produce a 'nut', while the FP was granted the benefit as it produces a 'nut' without threading. The Collector of Customs (Appeals) upheld this decision, emphasizing that the notification applies to a single nut-making machine and not to separate machines performing different functions.

2. Interpretation of the term "automatic multi-station nut making machine":
The appellants argued that both machines together constitute an "automatic multi-station nut making machine" as they perform seven stages of nut production. However, the Tribunal noted that the notification specifies a single machine, and the presence of manual intervention between the BP and FP stages disqualifies the setup from being considered fully automatic. The Tribunal also referenced other cases and concluded that the imported machines do not meet the criteria of being a single automatic machine as required by the notification.

3. Consideration of expert opinions and licensing interpretations in customs notifications:
The appellants cited opinions from the Director General of Technical Development (D.G.T.D.) and licensing policies to support their claim. However, the Tribunal held that licensing interpretations and expert opinions are not binding for customs notifications. The Tribunal emphasized that the language of the notification is clear and should not be extended or interpreted based on licensing criteria or expert opinions.

Conclusion:
The Tribunal dismissed the appeal, holding that the imported machines do not qualify as a single automatic multi-station nut making machine under Notification No. 40/78-Cus. The decision of the Collector of Customs (Appeals) to grant exemption only to the Finishing Press and not to the Blanking Press was upheld.