2006 (9) TMI 25 - AT - Central Excise

Central Excise Packing inspection table with gear drive motor attached moving belt to carry filled/sealed bottles/vials from capping machine for inspection Entitled to benefit of concessional rate of duty as table is not part of packing equipment but a complete pharmaceutical packing machine classifiable under heading 8422.90 of CET

Summary

Issues:
Classification of "Packing Inspection Table" under Notification No. 51/93 - Benefit denial based on table not being a complete machine - Appellants' contention on table classification under Heading 8422.90 - Examination of table's technical features for classification.

Analysis:
The dispute in the appeal centered around the classification of the "Packing Inspection Table" under Notification No. 51/93, dated 28-2-93, concerning goods under Heading 8422.90. The appellant's product, the table, was classified under this heading, which grants exemption to goods falling under it, excluding parts. However, the benefit of the Notification was denied based on the argument that the table was not a complete machine but only used for visual inspection before labeling, not part of the packing operation procedure according to the Revenue authorities.

The appellants argued that the table, used for inspecting filled/sealed bottles before packing, had its own drive mechanism, with bottles moving automatically. They contended that the table should be classified under Heading 8422.90 along with the main machine, rejecting the authorities' view that it was part of an automatic packing line.

Upon examination of the technical details and a photograph of the table, it was observed that the inspection table was not a standard table but had a gear drive motor with variable speed, a moving belt for bottle transportation, a lighting arrangement, and a partition for visual inspection. The table featured an independent drive mechanism with a motor and gear reduction system, bifurcating bottles for operators and space for bottle collection. The inspected bottles were then transported to the labeling machine. Consequently, it was determined that the table was a complete pharmaceutical packing machine itself, not merely a part of the packing equipment, warranting classification as a packing machine under Chapter heading 8422. Therefore, the concessional duty rate under Notification No. 51/93 was deemed applicable to the appellants, leading to the setting aside of the confirmed differential duty and granting consequential relief to the appellants.