1997 (11) TMI 250 - AT - Central Excise

Summary

Issues: Classification of imported components for laminating machines under Tariff Heading, Benefit of Notifications, Classification of rubber rollers

Classification of Components for Laminating Machines:
The appellants imported components for laminating machines and sought classification under Tariff Heading 84.40. The adjudicating authority classified laminating machines under Heading 8479.89 and rubber rollers under Chapter 40 of the Customs Tariff Act. The appellants argued that laminating machines are used in the binding industry for making covers and book binding, relying on HSN Notes. They contended that even if classified under Heading 8479.89, they should benefit from Notification No. 59/87. The Revenue argued that laminating machines do not fall under Headings 84.40 or 84.43 but under Heading 84.79, as they do not contribute to book binding or printing. The Tribunal found that the laminating machine's functions did not align with book binding or printing machinery, thus correctly classified under Heading 84.79.

Benefit of Notifications:
The appellants claimed entitlement to the benefit of Notification No. 59/87 for the laminating machine. The notification covers machinery used for the production of a commodity. However, the Tribunal determined that since the laminating machine only laminates documents and does not produce any commodity, it did not qualify for the notification's benefit, as held by the Revenue.

Classification of Rubber Rollers:
Regarding the classification of rubber rollers, the Revenue classified them under Chapter 40 of the Tariff as rubber parts. The appellants argued that these silicon rubber rollers, with a metallic base and heater coil, should be classified as parts of the laminating machine under Heading 8417.70. The Tribunal agreed that these rollers were not simple rubber rollers but specifically made for lamination machines, with provisions for fitting into the machine. Consequently, the rollers were classified as parts of the machine under Tariff Heading 8479.90, modifying the impugned order accordingly.

Conclusion:
The Tribunal upheld the Revenue's classification of the laminating machine under Heading 84.79 and its parts under Heading 8479.90. It denied the benefit of Notification No. 59/87 to the appellants due to the machine not being used for the production of a commodity. The classification of rubber rollers was revised to classify them as parts of the machine under Tariff Heading 8479.90. The appeal was disposed of in line with these findings.