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Assessment of parts of moulds under tariff headings 8480 and 84.85. Analysis: The appeal before the Appellate Tribunal CEGAT, Madras involved the assessment of parts of moulds under different tariff headings. The lower authority had classified the goods under tariff heading 8480, invoking Section Note 2 to Section XVI. However, the revenue sought assessment under tariff heading 84.85, arguing that 84.80 only covers moulds, not parts. The Learned SDR for the department reiterated these grounds during the appeal. The Consultant for the appellants contended that the lower authority correctly interpreted the law by assessing the goods under tariff heading 84.80 after considering Section notes and Chapter notes. Upon considering the arguments, the Tribunal observed that tariff heading 84.80 specifically covers moulds but not parts. Section Note 2 to Section XVI provides guidelines for assessing parts of machines falling under Chapter 84. The Tribunal analyzed the provisions of sub-para (a), (b), and (c) of Section Note 2, which dictate the classification of parts based on inclusion under specific headings, suitability for particular machines, and residuary classification. The assessment of parts under different headings depends on these criteria, with parts either being specifically covered under a heading or assessed based on their use with a particular machine. The Tribunal noted that the lower authority found the imported parts to be identifiable parts of moulds, suitable for use solely or principally with moulds. As such, the reasoning behind assessing the goods under tariff heading 84.80 was deemed appropriate. Therefore, the Tribunal upheld the lower authority's interpretation of the law and dismissed the appeal by the revenue. However, regarding a second item involved in the appeal, the Consultant for the respondent accepted the classification ordered by the original authority, leading to partial allowance of the appeal in those terms. In conclusion, the Tribunal's decision clarified the proper assessment of parts of moulds under relevant tariff headings, emphasizing the importance of considering Section notes and the functional use of parts for classification purposes.
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