1997 (9) TMI 251 - AT - Customs

Summary

Issues: Classification of equipment and accessories for CNC Turning Machine Model RNC 1000-E for Customs duty purposes.

The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of equipment and accessories for the Monforte Make CNC Turning Machine Model RNC 1000-E for Customs duty purposes. The goods were imported for display at the India International Trade Fair, 1984, and were cleared under a fair Bill of Entry. The appellants purchased the machinery along with equipment and accessories, which were classified separately under specific headings for Customs duty purposes. A refund claim was filed, arguing that the equipment and accessories should be classified along with the machine, but it was rejected. The case went through adjudication and appeal processes, with the final appeal challenging the order of the Assistant Collector of Customs. The matter was heard on 10-9-1997, with the appellants seeking a decision on merits.

The Tribunal examined the facts and documents related to the importation of the goods. The invoice showed separate values for the base machine and the standard equipment and accessories. Parts and accessories, if separately classifiable under a specific heading in the Customs Tariff, should be classified accordingly, even if they are necessary for the machine's operation. Various parts and accessories, such as clamping equipment and transformers, were separately priced and identified. The product literature also indicated that certain equipment was supplied separately, supporting the separate classification of accessories.

The appellants had cleared the goods under the assessed duty and later filed a refund claim, which was rejected due to a lack of evidence that the accessories were solely or principally for use with the base machine. The certificate from suppliers and other documents did not establish that the accessories were integral to the base machine's operation. Since the base machine was complete without the standard equipment and accessories, and their values were separately shown, they could not be considered part of the base machine for classification purposes.

Considering all the facts and arguments presented, the Tribunal found no merit in the appeal and rejected it. The decision upheld the classification of equipment and accessories separately from the base machine for Customs duty purposes based on the specific provisions of the Customs Tariff and the evidence provided during the proceedings.