1997 (8) TMI 144 - AT - Customs

Summary

Issues:
- Denial of benefit of exemption under Notification No. 154/86-Cus. for importing an Internal Grinding Machine instead of a Surface Grinding Machine.

Analysis:
The appellants imported a Cincinnati Milacron Universal Precision Internal Grinding Machine and claimed the benefit of Notification No. 154/86-Cus., dated 1-4-1986, which provides partial exemption in basic duty. The benefit was denied on the grounds that the machine imported was an internal grinding machine, not a surface grinding machine as specified in the notification. The appeal against the Collector of Customs (Appeal) order was dismissed.

The appellants argued that the imported machine could perform surface grinding functions in addition to internal grinding and external grinding. They presented the machine's catalogue to support their claim. The respondent contended that the benefit of the notification was only applicable to surface grinding machines, not internal grinding machines. The respondent also argued that the machine fell under Heading 8460 of the Customs Tariff and was liable for duty at the normal rate of 85%.

After hearing both sides, the Tribunal examined the machine's capabilities as described in the catalogue provided by the appellants. The catalogue indicated that the machine could perform surface grinding and external grinding tasks in addition to internal grinding. The Tribunal concluded that since the machine could function as a precision surface grinding machine as per the notification's criteria, it was entitled to the benefit of Notification No. 154/86-Cus., dated 1-4-1986. Therefore, the Tribunal set aside the previous order and allowed the appeal in favor of the appellants.