1999 (3) TMI 142 - AT - Customs

Summary

Issues:
1. Classification of imported goods under Customs Tariff.
2. Eligibility of imported goods under Open General Licence (O.G.L.).

Classification Issue:
The appellant imported a machine declared as a "Fully Programmable Paper cutting machine Model 735" under Heading 8441 of the Customs Tariff, claiming O.G.L. status. However, a show cause notice alleged the machine's classification under 90.10 of the Tariff and ineligibility under O.G.L. The Collector classified it as a slitter rewinder machine under 9010.20, leading to confiscation and penalties. The appellant argued the machine functioned as a paper cutting machine, citing Tribunal precedents recognizing slitter-cum-rewinders as such. The supplier clarified the machine's inability to cut films, supporting the appellant's claim. The Tribunal, in line with previous decisions, concluded the machine was indeed a paper cutting machine under Heading 8441.10, overturning the Collector's classification.

O.G.L. Eligibility Issue:
The appellant contended that the machine qualified as a paper cutting machine under Heading 8441.10, contrary to the Revenue's assessment under Heading 9010.20. The Tribunal referenced the supplier's clarification that the machine couldn't cut films, reinforcing the appellant's argument. Relying on past cases, the Tribunal affirmed the machine's identity as a paper cutting machine, aligning with the appellant's description. Consequently, the Tribunal allowed the appeal, setting aside the Collector's order and confirming the machine's classification under Heading 8441.10 of the Customs Tariff, thereby resolving the O.G.L. eligibility issue in favor of the appellant.