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Issues: Classification of imported machine under Customs Tariff Act - Heading 84.59(1) or 84.59(2).
In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the classification of an imported Drais Pearl Mill with Pin Discagitator Triple Cooling Sealed Features - Jacket and accessories. The Department initially classified the machine under Heading 84.59(1) of the Customs Tariff Act, while the importers contended that it should be classified under Heading 84.59(2) as a machine designed for the production of a specific commodity, namely printing ink. The Assistant Collector rejected the claim of the importers based on the machine's leaflet and installation manual, which indicated multiple applications such as pigment pastes, printing inks, ferrites, among others. The Collector (Appeals) later overturned this decision after visually examining the machine and determining that it indeed manufactured printing ink in finished form, thus falling under Heading 84.59(2). The Revenue appealed this decision, leading to the present judgment. The Appellate Tribunal carefully analyzed the machine's functions and features as described in the leaflet and installation manual. It noted that the machine's primary function was dispersing a mixture through capillaries to produce printing ink in finished form. The Collector (Appeals) had observed during a factory visit that the machine did not require further grinding of the pulverized pigment, emphasizing its role in manufacturing printing ink. The Tribunal highlighted that the machine's ability to use different grinding media for various applications did not detract from its core function of producing printing ink. Moreover, the Tribunal considered the importers' own statement that the machine processed input paste into a finer output, contradicting their claim that grinding was not a function of the machine. It emphasized that the presence of two pumps instead of one, as indicated in the leaflet, did not alter the machine's versatility for multiple applications. The Tribunal concluded that the machine's documentation did not explicitly state its specific use for printing ink production, leading to the classification under Heading 84.59(1) as a general-purpose grinding machine rather than a machine designed for a particular commodity. Ultimately, the Tribunal ruled in favor of the Revenue, holding that the imported Drais Pearl Mill should be classified under Heading 84.59(1) of the Customs Tariff Act, 1975. By setting aside the previous decision, the Tribunal upheld the Revenue's appeal, emphasizing the machine's general-purpose nature over its specific design for printing ink production.
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