1997 (6) TMI 111 - AT - Central Excise

Summary

Issues: Classification of imported calender rolls under CTH 8439.20 or CTH 8420

In this case, the appellants imported calender rolls for paper making machinery and claimed classification under CTH 8439.20, arguing that they are parts of paper making machinery. The department rejected this claim, asserting that calendering machines are covered under CTH 8420. The appellants contended that the calender rolls are specific components designed for paper making machinery and function as a distinct section of the machinery, citing the Dictionary of Paper and Pulp of Paper Technology.

The tribunal considered the nature of the imported goods, which were rolls in the calendering section of the machine. Reference was made to the Dictionary of Paper, which described the calender section as part of the Fourdrinier Machine for paper making, emphasizing the purpose of calender stacks in finishing the paper. The tribunal acknowledged that the impugned goods could be part of the Fourdrinier Machine for paper making but deliberated on whether they should be treated as parts of the paper making machine or assessed separately as parts of a calendering or rolling machine.

The tribunal noted that while the goods function as parts of the calendering section of the paper making machine, classification as parts of the principal machine would only be warranted if Rule 2(a) of Section XVI did not apply. Since calendering machines are specifically covered under CTH 8420, the calender rolls were deemed to be classifiable under this item. The tribunal also highlighted that the HSN Notes under 8439 specifically excluded calender rolls as parts, indicating that they should be classified under 8420.

Additionally, the tribunal referenced a previous order in the case of M/s. Sirsapur Mills v. C.C., Madras, where the classification of swimming rolls and accessories of calender stock of paper was considered. Based on the arguments presented and the legal provisions, the tribunal found no merit in the appeal and upheld the department's decision to classify the calender rolls under CTH 8420, rejecting the appeal against the Order-in-Appeal.