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Issues: Classification of Uncoiler and Leveller under 84.45/48 as claimed by the assessee or under 84.59 as per the Department.
Analysis: 1. Issue of Classification: The primary issue in this appeal before the Appellate Tribunal CEGAT, New Delhi was whether the Uncoiler and Leveller imported by the appellant should be classified under sub-heading 84.45/48, as contended by the assessee, or under 84.59, as asserted by the Department. The relevant entries under these headings were examined to determine the appropriate classification. 2. Appellant's Argument: The appellant argued that the Uncoiler and Leveller are accessories suitable for use solely or principally with machine tools falling under 84.45/48. The appellant, engaged in manufacturing electric fans, imported these items along with other accessories for stamping press, emphasizing that these items enhance the effectiveness of the machine. Citing a decision of the Bombay High Court, the appellant contended that since the accessories were intended for use in the stamping press, they should not be classified independently under 84.59. 3. Department's Position: The Department, represented by Shri G.D. Sharma, countered the appellant's argument by highlighting the appellant's own reply, which indicated that the Uncoiler and Leveller were invoiced separately as customers had the option to choose suitable capacities. It was argued that these items could be used independently for various machines, making them independent machines with individual functions, not mere accessories or parts. 4. Tribunal's Decision: After considering both sides' submissions, the Tribunal found that the Uncoiler and Leveller were invoiced separately to provide customers with options, indicating their independent nature. The Tribunal concluded that these items had individual functions and were not solely for the stamping press but could be used with other machines as well. Rejecting the appellant's argument that these items should be classified under 84.45 as accessories, the Tribunal upheld the Department's classification under Heading 84.59 for machines and mechanical appliances with individual functions. 5. Conclusion: Consequently, the appeal was dismissed by the Tribunal, affirming the Department's classification of the Uncoiler and Leveller under Heading 84.59. The judgment clarified that these items, due to their independent functions and applicability to various machines, were not to be classified as accessories solely designed for the stamping press under 84.45/48, as claimed by the appellant.
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