1990 (2) TMI 218 - AT - Customs

Summary

Issues:
- Interpretation of Notification 314/85 regarding exemption for moulds used for manufacturing plastic articles.
- Determining whether the imported moulds were eligible for exemption under the Notification.
- Analysis of the nature of the goods imported and the manufacturing process involved.

Interpretation of Notification 314/85:
The appeal was directed against an order upholding the denial of exemption under Notification 314/85 by the Collector of Customs (Appeals). The Notification exempts moulds falling under Chapter 84 when imported for manufacturing artificial plastic articles. The expression "moulds" is defined in the Notification as instruments shaping plastic material into the desired form. The Tribunal analyzed the description of the imported goods as moulds for plastic and examined the manufacturing process outlined by the appellants.

Eligibility for Exemption:
The Customs House contended that the imported moulds were not eligible for exemption as they were used to manufacture shoes, not plastic articles. The appellants argued that the moulds were for producing plastic soles fused with the shoes in an integrated process. They relied on previous Tribunal decisions regarding the interpretation of similar exemption notifications in cases involving multi-functional machines. The Department emphasized strict interpretation of the Notification and cited a case to support their stance.

Nature of Goods and Manufacturing Process:
Upon examination, the Tribunal found that the imported moulds were designed for an injection moulding machine used to produce shoes with plastic soles. The moulds consisted of shoe lasts, sole plates, and rings, all essential components for manufacturing the plastic soles. The Tribunal detailed the manufacturing process involving injection of plastic material to shape the soles, which were then fused with the shoe upper in the same machine. The Tribunal concluded that the moulds satisfied the conditions for exemption under Notification 314/85 due to the integrated process of producing plastic soles for shoes. Consequently, the appeal was allowed in favor of the appellants.