1991 (2) TMI 230 - AT - Customs

Summary

Issues:
1. Condonation of delay in filing supplementary appeal.
2. Correct classification of imported machinery under Heading 84.59(1) or 84.59(2).

Condonation of Delay:
The Collector of Customs, Bombay filed an appeal challenging the order by the Collector of Customs (Appeals), Bombay. The appeal was received with a delay, and a supplementary appeal was also filed later. The appellant sought condonation of delay, claiming no negligence. The respondent opposed the condonation. After hearing both sides, the Tribunal found sufficient cause for the delay and granted the condonation. The appeals were then considered on merits.

Classification of Imported Machinery:
In the first appeal, the appellant argued that the imported Chemcut Model 547-15 Alkaline Etching System should be classified under Heading 84.59(1) instead of 84.59(2) as it does not produce a commodity. The second appeal involved the classification of Resco ADF-Stripper 30 under the same headings. The appellant contended that the machines were not for production but for treating metals, advocating for Heading 84.59(1) classification. The respondent, however, supported the classification under Heading 84.59(2) based on the production of printed circuit boards. The Tribunal examined the functions of the machines and relevant headings. Referring to previous judgments, the Tribunal emphasized that Heading 84.59(2) applies to machines designed to produce a commodity. Noting separate invoices and bills of entry for the machines, the Tribunal disagreed with the Collector of Customs (Appeals)'s interpretation of manufacture and production concepts. Consequently, the impugned order was set aside, and the matters were remanded for reconsideration without importing such concepts.

Conclusion:
Both appeals were allowed by way of remand for further consideration without applying the concept of manufacture and production under the Central Excises and Salt Act, 1944. The Tribunal clarified the distinction between machines designed for production of a commodity and those merely treating materials, emphasizing the need for a new commodity to emerge for classification under Heading 84.59(2).