1995 (11) TMI 195 - AT - Customs

Summary

Issues: Classification of imported machinery for the manufacture of polyster zip fastners under Tariff Heading 84.59(1) or 84.59(2).

The judgment involves an appeal by the Revenue against the order-in-appeal allowing the respondents' appeal regarding the classification of imported machinery for manufacturing polyster zip fasteners. The dispute revolves around the classification of six machines under Heading 84.59(1) or 84.59(2) of the Tariff prevalent during 1984-85. The Revenue argues that each machine has individual functions and should not be classified as machinery designed for the production of a commodity. The Collector (Appeals) accepted the respondents' classification, leading to the appeal. The main contention is whether the machines should be classified under Heading 84.59(1) or 84.59(2).

Upon examining the relevant Chapter Heading 84.59, it is noted that it covers machines and mechanical appliances with individual functions not falling under any other heading of Chapter 84. The judgment emphasizes that the disputed machines fall under Heading 84.59, and the dispute is solely about whether they should be classified under sub-item (1) or (2). Each machine is deemed to have an individual function, as suggested by the main heading of Heading 84.59. It is clarified that the manufacture of polyster zip fasteners requires each machine to perform a specific function designed for that purpose. The argument that two machines were not claimed under this heading is dismissed, as they may have individual functions specified elsewhere. The respondents' lack of objection to the classification of two machines does not negate the classification of other machines designed for manufacturing polyster zip fasteners under 84.59(2).

The judgment concludes that there is no justification to overturn the Collector (Appeals)'s decision, and the appeal from the Revenue is dismissed. It affirms that the machines, designed for specific functions contributing to the production of polyster zip fasteners, should be classified under Heading 84.59(2) as machinery designed for the production of a commodity.