2000 (2) TMI 476 - AT - Customs

Summary

Issues Involved:
1. Eligibility for the benefit of Notification No. 155/86-Cus.
2. Classification of the imported goods as complete machines or parts of machines.

Issue-Wise Detailed Analysis:

1. Eligibility for the Benefit of Notification No. 155/86-Cus.:
The appellants argued that the imported items were parts of machines required for setting up a new Coke Oven Battery and thus should be eligible for the benefit of Notification No. 155/86-Cus., which provides a concessional rate of duty for parts required for the initial setting up or for assembling or manufacturing specified articles. The Revenue contended that the imported items were complete machines and not parts, making them ineligible for the notification's benefit. The Tribunal examined the invoice, Bill of Entry, and Insurance Certificate, all describing the goods as "complete with accessories," and concluded that the goods were complete machines, thus not entitled to the notification's benefit.

2. Classification of the Imported Goods as Complete Machines or Parts of Machines:
The appellants maintained that the imported items were parts of the stamp charging and pushing machines and the gas cleaning car, essential for the new Coke Oven Battery. They provided detailed descriptions of the machines and their components, emphasizing that only specific parts were imported while others were manufactured indigenously. The Revenue, relying on the description in the Bill of Entry and other documents, argued that the items were complete machines. The Tribunal's majority opinion, however, found that the material evidence, including technical notes and import documentation, supported the appellants' claim that the imported items were parts and not complete machines. This view was supported by the Hon'ble Vice-President and the third Member, who emphasized that the goods imported could not function independently and were meant for use with the Coke Oven Battery.

Separate Judgments Delivered:
- Member (Judicial): Concluded that the goods were complete machines and not eligible for the notification's benefit.
- Vice-President: Disagreed, holding that the goods were parts of machines and eligible for the notification's benefit.
- Third Member: Concurred with the Vice-President, emphasizing that the goods imported were parts and not complete machines.

Conclusion:
The majority opinion set aside the impugned order, concluding that the imported items were parts of the machines required for the Coke Oven Battery and thus entitled to the benefit of Notification No. 155/86-Cus. The appeal was allowed with consequential relief to the appellants.