1997 (12) TMI 388 - AT - Central Excise

Summary

Issues:
1. Eligibility of shear blades for glass bottle machinery for exemption under Notification No. 59/87-Cus.
2. Classification of shear blades under Customs Tariff.
3. Interpretation of exemption notifications for additional duty of customs.
4. Application of Notification No. 4/91-Cus. for exemption on knives and cutting blades.
5. Assessment under Section 17 of the Customs Act, 1962.

Analysis:

1. The appeal concerned the eligibility of shear blades for glass bottle machinery for exemption under Notification No. 59/87-Cus. The appellant argued that shear blades should be considered parts of the glass bottle machinery and thus eligible for exemption. The respondent contended that shear blades were classifiable under a different heading and not covered by the exemption.

2. The Customs Tariff classified shear blades under Heading No. 82.08, distinct from the classification of glass bottle machinery. The appellant imported shear blades specifically classified under sub-heading No. 8208.90, which were designed for glass bottle machinery under sub-heading No. 8475.20. The dispute arose regarding the classification of shear blades and their eligibility for exemption.

3. The Tribunal analyzed the exemption notifications, emphasizing that the exemption under Notification No. 59/87-Cus. applied to goods falling under sub-heading No. 8475.20, which covered glass forming machinery, not shear blades classified under sub-heading No. 8208.90. The distinction between basic duty and additional duty of customs was crucial in determining the applicability of exemptions.

4. Notification No. 4/91-Cus. was considered for exemption on knives and cutting blades under Heading No. 82.08. The notification provided for exemption from a portion of the basic duty of customs but did not extend to the additional duty of customs. The Tribunal highlighted the specific provisions of the notification in relation to the classification and duty levies.

5. The assessment under Section 17 of the Customs Act, 1962 was discussed, indicating that the assessment was made on a second check basis, implying that the assessment was not deemed completed prior to the examination of the goods. This procedural aspect was relevant in the overall context of the appeal.

In conclusion, the Tribunal rejected the appeal after considering all relevant facts and legal provisions. The decision underscored the specific classification of shear blades, the interpretation of exemption notifications, and the distinction between basic and additional duty of customs in determining eligibility for exemptions. The judgment provided a detailed analysis of the issues raised and applied legal principles to reach a reasoned decision.