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Issues:
Classification of "Ultrasonic Cleaning Machines" under Chapter Heading 84.59(1) or 84.59(2); Maintainability of the appeal due to filing by an Assistant Collector under the direction of an Additional Collector; Whether the Ultrasonic Cleaning Machine is a production line machine. Classification Issue: The appeal before the Appellate Tribunal CEGAT, New Delhi concerns the classification of "Ultrasonic Cleaning Machines" under Chapter Heading 84.59. The dispute revolves around whether the machines should be classified under 84.59(1) or 84.59(2). The Collector (Appeals) had classified the machines under 84.59(2) as production line machines, while the appellants argued for classification under 84.59(1) as machines with individual functions not specified elsewhere. The Tribunal analyzed the functioning of the Ultrasonic Cleaning Machine, emphasizing its role in cleaning and washing components with various media and ultrasonic waves to ensure proper functioning of automobile engine parts. The Tribunal referred to the CCCN Compendium of Classification opinions and Explanatory Notes under Heading 84.59, concluding that the machine's purpose of cleaning and improving component functioning aligns with the classification under 84.59(2) for machines designed for the production of commodities. The Tribunal upheld the classification under 84.59(2), rejecting the Revenue's appeal. Maintainability Issue: The Respondents raised objections regarding the maintainability of the appeal, arguing that it was filed by an Assistant Collector under the direction of an Additional Collector, questioning the authority of the filer. The Tribunal examined the statutory provisions and opined that under Section 129A(2) of the Customs Act, the Collector can direct any other person to file an appeal on his behalf. The Tribunal clarified that the term "Collector" includes "Additional Collector" and found no specific prohibition against the Assistant Collector filing the appeal on the Collector's behalf. Consequently, the objection to the maintainability of the appeal did not hold, and the Tribunal disposed of the objections. Production Line Machine Issue: The Respondents contended that the Ultrasonic Cleaning Machine is a production line machine as the motorcycle components they manufacture require washing/cleaning with the machine for proper functioning. The Tribunal considered the arguments presented by both parties, including references to previous decisions on similar machinery classifications. After evaluating the purpose and functioning of the Ultrasonic Cleaning Machine, the Tribunal agreed with the Respondents that the machine plays a crucial role in the production process by ensuring the cleanliness and smooth functioning of the manufactured components. Therefore, the Tribunal concluded that the Ultrasonic Cleaning Machine qualifies as a production line machine and upheld the Respondents' classification under Heading 84.59(2), dismissing the Revenue's appeal. In summary, the Appellate Tribunal CEGAT, New Delhi, in the judgment, addressed the classification issue of "Ultrasonic Cleaning Machines" under Chapter Heading 84.59, the maintainability of the appeal filed by an Assistant Collector, and the classification of the machine as a production line machine. The Tribunal upheld the classification under 84.59(2) based on the machine's role in improving component functioning and production line processes, dismissing the Revenue's appeal and disposing of the objections raised by the Respondents.
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