1997 (10) TMI 257 - AT - Customs

Summary

Issues:
1. Classification of jet filters under Customs Tariff Headings.
2. Interpretation of Notifications 69/87 and 132/87 for classification of goods.
3. Determination of whether jet filters are parts of milling machines or complete machines.
4. Application of Section Notes of Section XVI for classification of goods.

Analysis:
1. Classification of Jet Filters:
- The case involved two appeals regarding the classification of jet filters under Customs Tariff Headings. The first appeal (C/2797/89-B2) dealt with the import of a jet air filter for a flour mill, while the second appeal (C 2921/89-B2) involved the import of an air jet filter.

2. Interpretation of Notifications:
- The Respondents in both cases claimed that the goods should be classified under different headings based on specific notifications. They argued for classification under Chapter 9806 read with Notification 69/87, emphasizing that the impugned goods were essential parts of milling machines and should benefit from the notification.

3. Classification as Parts of Machines:
- The Collector (Appeals) in both cases held that the jet filters were indeed parts of the milling machines, essential for their operation. They referred to the function of the filters in separating air and flour, preventing pollution, and ensuring the efficiency of the milling process. The argument was made that even if the filters were complete machines, they could still be considered parts of another machine.

4. Application of Section Notes:
- The Tribunal analyzed the HSN Notes and Section Notes of Section XVI to determine the classification of the jet filters. It was noted that while the filters were integral to the milling process, they were not classified as parts of milling machines under Chapter 84. The Tribunal concluded that the jet filters were accessories to the milling machines rather than parts, and thus should be classified under 8421.

5. Judgment and Conclusion:
- The Tribunal held that the impugned goods, the jet filters, were correctly classifiable under 8421 based on their function, usage, and interpretation of relevant notifications and section notes. The orders assessing the goods under different headings were set aside, and the Revenue Appeals were allowed in favor of the Appellant.

This detailed analysis of the judgment highlights the key issues, arguments presented by both parties, the interpretation of relevant legal provisions, and the ultimate decision reached by the Tribunal regarding the classification of jet filters under the Customs Tariff Headings.