1988 (4) TMI 186 - AT - Customs

Summary

Issues: Classification of imported machines under Heading 84.56 CTA versus 84.59(1) CTA

Analysis:
1. The appeal involved the classification of Sand Scrubber and Lump Breaker machines imported by the respondents under Heading 84.56 CTA or 84.59(1) CTA. The Assistant Collector initially classified the machines under 84.59(1) CTA, but the Appellate Collector allowed the appeal, stating that the machines should be classified under Heading 84.56 CTA.

2. The Government of India, with reversionary powers, believed that the machines were correctly classifiable under Heading 84.59(1) CTA. Their reasoning was based on the machines working on sand moulds, which they argued were not covered by Section V of CCCN, indicating that the machines did not fall under Heading 84.56 CTA.

3. The arguments presented by the parties revolved around whether the machines should be classified under Heading 84.56 or 84.59(1) CTA. The learned SDR contended that the machines were correctly classified under 84.59(1) CTA, emphasizing that the broken moulds contained materials other than sand, such as cement and molasses, which were not covered by Heading 84.56.

4. On the other hand, the learned Advocate for the respondents argued against the Government's view, stating that the machines worked on broken pieces of moulds, not moulds themselves. He highlighted that the broken pieces contained sand and cement, which fell under Chapter 25, supporting the classification under Heading 84.56 CTA.

5. The Tribunal considered the arguments from both sides. It noted the transformation undergone by Chapter 25 from CCCN to CTA and the composition of the broken moulds, primarily sand and cement. The Tribunal found that the Government's view could not be sustained, and the Appellate Collector's classification under Heading 84.56 CTA was deemed correct in law, aligning with a previous Tribunal order.

6. Consequently, the appeal was rejected, and the show cause notice was dropped, affirming the classification of the Sand Scrubber and Lump Breaker machines under Heading 84.56 CTA.