1986 (11) TMI 280 - AT - Customs

Summary

Issues:
Classification of imported drilling machine under Heading 84.23 or 87.03 of CTA and CCCN; Levy of additional duty under T.I. 68 CET or Item 34 CET.

Classification Issue:
The appellants imported a drilling machine mounted on a truck and claimed re-assessment under Heading 84.23 instead of 87.03 of CTA. The Assistant Collector initially classified it under Heading 87.03, considering it a special purpose vehicle. The Collector of Customs (Appeals) held that the machine was not self-propelled, falling under Heading 84.23. The Appellate Tribunal analyzed the headings and concluded that the imported goods were drilling equipment mounted on a vehicle, more fitting under Heading 84.23. The Tribunal upheld the Collector's classification under Heading 84.23 for basic customs duty.

Additional Duty Issue:
Regarding the levy of additional duty, the appellants argued for duty under T.I. 68 CET for the entire machine. The Tribunal found that the goods could be separated for valuation as a truck and drilling equipment. As the drilling equipment and vehicle part were distinct, the countervailing duty was correctly imposed under Item 68 for the drilling equipment and under T.I. 34 for the vehicle part. The Tribunal upheld the Collector's decision on the levy of additional duty.

Conclusion:
The Appellate Tribunal dismissed both appeals, affirming the Collector of Customs (Appeals) orders on classification and additional duty. The Tribunal upheld the classification of the imported drilling machine under Heading 84.23 for basic customs duty and the levy of additional duty under Item 68 CET for the drilling equipment and T.I. 34 for the vehicle part.