2016 (11) TMI 817 - AT - Customs

Denial of benefit of N/N. 06/2002-CEX - Soft Flow Dyeing Machine - Multifunction Stock Tank - Held that - From the technical write up, we find that the soft flow dyeing machine, the multifunction stock tank is considered as service tank and is functional along with soft flow dyeing machine. We also notice that the appellant had produced a certificate from the manufacturer which indicated that the entire set of soft flow eyeing machine with multifunction stock tank was nothing but fabrics dyeing machine complete with dye kitchen and accessories. N/N. 21/2002 is applicable for the period in question, extends partial exemption from the customs duty for soft flow dyeing machine. While Notification No.6/2002 exempts payment of Central Excise duty on fabrics dyeing machine complete with dye kitchen and accessories . We find that the description as declared by the appellant and the various documents produced in respect of the said machine from the manufacturers, it indicates that soft flow dyeing machine with multifunction stock tank is nothing but fabric dyeing machine complete with dye kitchen and accessories. The write up which was produced before us and as was produced before the lower authorities, clearly indicates that the soft flow eyeing machine complete with multi function stock tank are nothing but soft flow eyeing machine complete with dye kitchen and accessories. Appeal allowed.

Summary

Issues:
- Classification under Customs Tariff headings
- Benefit of Notification No.21/2002 and Notification No.6/2002-CEX
- Exemption from excise duty
- Interpretation of sales contract and technical literature
- Applicability of notifications
- Comparison with previous Tribunal judgment

Classification under Customs Tariff headings:
The appellant filed a bill of entry for clearance of goods under specific Customs Tariff headings, claiming partial exemption benefits under Notification No.21/2002 and Notification No.6/2002-CEX. The first appellate authority denied the benefit of Notification No.06/2002-CEX, leading to an appeal against the assessment.

Benefit of Notification No.21/2002 and Notification No.6/2002-CEX:
The appellant claimed exemption under Notification No.6/2002-CEX for payment of CVD on both items, Soft Flow Dyeing Machine and Multifunction Stock Tank. The appellant argued that both items were part of a complete unit termed as a fabric dyeing machine, as per the sales contract and technical documentation provided.

Exemption from excise duty:
The Tribunal analyzed the technical write-up from the sales contract, which indicated that the Multifunction Stock Tank and Soft Flow Dyeing Machine functioned together as a fabric dyeing machine. The manufacturer's certificate also confirmed that the set was a fabric dyeing machine complete with dye kitchen and accessories.

Interpretation of sales contract and technical literature:
The Tribunal observed that the appellant had claimed exemption under both Notification No.21/2002 and Notification No.6/2002. However, based on the description provided by the appellant and documents from the manufacturer, it was determined that the items qualified as a fabric dyeing machine complete with dye kitchen and accessories.

Applicability of notifications:
The Tribunal referred to a previous judgment where a similar issue was considered, emphasizing the importance of technical opinions and literature. The Tribunal concluded that the appellant met the requirements of the notifications, allowing the appeal and providing consequential relief.

Comparison with previous Tribunal judgment:
The Tribunal highlighted a previous judgment that supported the appellant's case, emphasizing the significance of technical reports and expert opinions in determining the classification and eligibility for exemption benefits. The Tribunal set aside the impugned order and allowed the appeal with consequential relief.