1988 (6) TMI 154 - AT - Central Excise

Summary

Issues: Classification of imported Double Drum Roller Drier under Chapter Heading 8419.39 or 8419.81

Detailed Analysis:

1. Factual Background:
- M/s. Food Specialities Ltd. imported a Double Drum Roller Drier and claimed assessment under Chapter Heading 8419.39.
- The machine's use included not only drying but also ready-cooking effects for instant food properties.
- The Assistant Collector assessed it under 8419.81, considering its principal purpose as per Chapter Note 7 to Chapter 84.
- The Collector of Customs (Appeals) upheld the assessment under 8419.81.
- The appellants appealed to the Tribunal challenging the classification.

2. Appellant's Arguments:
- Appellants argued for classification under 8419.39, citing CCCN definition of Rotary Dryers and Chapter 8419 description.
- Referred to Note 7 to Chapter 84, emphasizing the machine's primary function for drying.
- Pleaded for acceptance of the appeal based on the machine's purpose for drying.

3. Respondent's Arguments:
- Revenue authorities defended the classification under 8419.81, referring to the Bill of Entry and Catalogue.
- Argued that the machine's main function needed evaluation between drying and cooking.
- Pleaded for dismissal of the appeal maintaining the original classification.

4. Tribunal's Decision - Harish Chander, Member (J):
- Tribunal considered the specific capabilities of the imported machine as per the Catalogue.
- Found that the machine's functions aligned more with Heading 8419.81 for food processing rather than just drying.
- Confirmed lower authorities' findings, dismissing the appeal based on the specific use of the machine.

5. Dissenting Opinion - I.J. Rao, Member (T):
- Disagreed with the majority decision, analyzing the technical literature and machine's versatility.
- Noted that the machine primarily functioned as a drying machine, capable of processing various products.
- Referred to Explanatory Notes supporting classification as a dryer under Heading 8419.39.
- Applied Chapter Note 7 to conclude that the machine's principal purpose of drying warranted classification under 8419.39.

6. Final Decision:
- Majority decision allowed the appeal based on Rao's dissenting opinion.
- The Tribunal classified the Double Drum Roller Drier under Heading 8419.39 as a versatile drying machine, contrary to the lower authorities' classification under 8419.81.
- Relief granted to the appellants based on the machine's principal purpose of drying, as per the Chapter Note and Explanatory Notes.

This detailed analysis outlines the classification dispute over the imported Double Drum Roller Drier, highlighting the arguments presented by both parties and the Tribunal's ultimate decision based on the machine's primary function for drying.