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TMI Blog1986 (11) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ing machine with accessories and spare parts. This was assessed to customs duty under heading 87.03 of CTA and to additional duty on the basis that the imported drilling machine fitted in a truck was liable to additional duty under Item 68 and the truck part of it under Item 34 of the CET in view of the Explanation II of Item 34 of CET. The appellants cleared the goods after payment of customs duty claimed to be under protest and subsequently made an application for refund of part of the duty claiming re-assessment of the goods under heading 84.23 on the ground that the imported machine was Hydro 44 Drill with accessories and spares. The Assistant Collector noted that the machine imported was mounted on the International Harvester 4 x 6 tan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 84.23 of the CTA and was to be appropriately classifiable under that heading. In so far as the additional duty was concerned, he confirmed the order of the Assistant Collector. 5. It is against this order that the present two appeals are filed. The importers, namely, M/s. Mineral Exploration Corporation Limited, submit that the CV duty on the entire machine should be charged under T.I. 68 CET. The Department s appeal is against the order of the Appellate Collector and seeks to restore the classification of the imported machine under Heading 87.03 CTA. 6. We shall take up the question of basic customs duty first. The competing entries before us are Heading 84.23 CTA under which the Appellate Collector ordered classification and 87.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lough, not self-propelled (including snow-plough attachments). Therefore, according to the learned SDR, the Appellate Collector misdirected himself and was wrong in holding the word self-propelled applied to the drilling machine also. 8. It is further submitted by Shri J. Gopinath that according to CCCN, the Heading 84.23 covers five categories of machines which had been summarised into three categories in CTA Heading 84.23. 9. Shri Gopinath further submitted that admittedly the imported drilling machines were fitted on a truck and that the Collector s observation to the effect the. Asstt. Collr. had decided that what was imported was a special type of transport equipment falling under Heading 87.03 of the CTA, was not entirely correct. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the imported goods are squarely covered by Heading 84.23. What was imported was a mobile excavating rig which falls into the category of boring and extracting machine. Recalling that a skid-mounted rig was classified by the Custom under Heading 84.23. Shri Bobde submitted that mounting is optional and the drill could be mounted either on a truck or a skid or a tractor. The mounting would be done according to the needs, but it does not impede the purpose or use of the drill. 12. Shri Bobde further pointed out that the value of the drill was Rs. 33 lakhs whereas the value of the truck was Rs. 9.72 lakhs and total value of the imported machinery being Rs. 42.72 lakhs. These figures were given by him to show that the primary val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der H 84.23) or mounted on a truck. In this case, the drill has been imported mounted on a truck. It is equally clear that the drill did not become an integral part of the truck though it is mounted on the same and mobility is provided by this arrangement. The learned SDR explained that while the truck has all normal features attributed to motor vehicle, none of the controls for the operation of the drill find place within truck. This position is also accepted. We have also taken into consideration that the value of the truck is around 28% of the total value of the entire drill together with the truck. 16. Keeping this in view, we carefully perused heading 87.03 CTA. This heading covers special purpose motor lorries and vans. The examinat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted goods are not mounted/fitted with any weight-lifting or other specialised material handling equipment, but were equipped with only drilling equipment. However, this reason alone does not help the importers. We note that the goods imported can be clearly separated for the purposes of valuation and identification as a truck and drilling equipment. It is not as if the entire unit is so integrated that it becomes inseparable for any of these purposes. Therefore, in our view, the countervailing duty was correctly levied under Item 68 for the drilling equipment and under T.I. 34 for the vehicle part of the equipment. 18. In this view uphold the impugned order of the Collector of Customs (Appeals) whereby the confirmed the Assistant Collecto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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