9911796707
TMI Blog1988 (4) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... tant Collector of Customs passed an order classifying the machines under Heading 84.59(1) CTA. In appeal the Appellate Collector allowed the appeal inter alia holding that the assessment order was based on the explanatory note to the CCCN and that this application was wrong because the explanation about mineral products that these include the products of Section V are not incorporated in the notes to Section XVI, notes to Chapter 84 or in the Heading 84.56 of the Customs Tariff, 1975. He further observed that the department s argument that the machines under reference are not used in extractive industries is not justified since the explanatory notes to the CCCN also do not specify that these machines have to be for extractive industries onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by Section V of CCCN. Besides, as per Webster s Dictionary, mineral is a homogeneous or apparently homogeneous and usually solid substance (such as ore, coal, stone, rock sand and earth) obtained for man s use usually from the ground. It therefore, appears that minerals have necessarily to be in crude form and are not supposed to be subjected to any mechanical or physical processes except minor operations like crushing, grinding, washing, separating etc. which do not change the structure of the product itself. The impugned machines which appear to be machines for working on sand moulds, therefore do not appear to be covered by the description of the Heading 84.56 or any other heading of the Chapter 84 of CTA 75." 4. Shri Gopin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on a vibration principle and is used for dry reclamation of sand lumps obtained from the mould after mechanical casting by sand. Shri Lakshmikumaran argued that the Government were wrong in observing that the scrubber is used for sand reclamation from used sand moulds and stated that it is broken pieces of moulds from which sand is reclaimed by. this machine and not from moulds. He emphasised that moulds are different from broken pieces thereof. On this ground alone, the learned Advocate argued, the show cause notice should be dropped. 6. The learned Advocate further argued that applying the explanation contained in CCCN to Heading 84.56 CTA is completely wrong because while Heading 84.56 was adopted totally from the CCCN, Chapter 25 (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.59(1) and not under 84.56 CTA has been clearly stated. As the Tribunal can and should go into all the facts, this circumstances alone does not render the notice void. 9. The Assistant Collector based his order on the explanatory notes in Section V of the CCCN, and held that the Headings of Chapter 25 will apply only to goods which are in crude shape or which have been crushed ground or concentrated by magnetic separation or other mechanical or physical processes but not subjected to any further process. On the basis of the explanatory note he came to the conclusion that lump breaker will not be classifiable under Heading 84.56 as articles made of by shaping or carving will not be covered by Section V. The same reasons were applied to sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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