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TMI Blog1990 (6) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate from an Engineer to the effect that these are used for various machines and that PSHE types are used for bearing blocks and PASE are meant for radiant drilling machines and other types. But with respect to 18 pcs of cylindrical roller bearings with cartridges and housing and 5 pcs of cylindrical roller bearings with cartridges, the explained with catalogues that these are for cooling beds of rolling mill. The appellants claimed clearance of these goods on the ground that rolling mills for which these are spares, are machine tools. But the department was of the opinion that rolling mills cannot be treated as machine tool and as such spare parts of rolling mills are not entitled to O.G.L. benefits as provided under Appendix 6. In that view of the matter a show cause notice was issued to the appellants to show cause in writing as to why goods in question should not be confiscated under Sec. 111(d) of the Customs Act, 1962, and why penal action should not be initiated under Section 112 of the Customs Act, for having contravened clause 3(1) of Import Control Order 1955 as amended read with Section 3 of Import and Export (Control) Act; 1947 as amended, read with Section 11 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en I.T.C. classification and I.C.T. classification as both of them are based on B.T.N. classification (Brussels Tariff Nomenclature). It was, therefore his contention that when B.T.N. defined rolling mill as a machine tool in the exclusion clause at Page 1324 of Volume 3 and since I.C.T. policy is based on B.T.N. and the issue involved in this case being the licence coverage, the customs authorities cannot consider rolling mill as other than machine tools. He further relied on the following circumstances to justify his argument. 4. That the Customs Department s understanding of the B.T.N. classification that all machine tools fall under Heading No. 84.45/48 for licence purpose is erroneous as all machine tools are not covered by Heading Nos. 84.45, 84.46, 84.47 and 84.48, as would be evident from the exclusions under these four headings, showing the classification of certain machine tools under Heading Nos. 84.43, 84.44, 90.22, 84.01 to 84.21, 84.59, 84.56, 84.17 etc. 5. That Heading No. 84.45 according to the B.T.N. Heading, covers only certain machine tools for working metal or metal carbide not being machine falling within Heading No. 84.49 or 84.50. Here again, according to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y covers machines used for shaping or surface working metal by either cutting away/removing metal or changing the shape of metal without removing metal. There are three major categories mentioned under Heading 84.45 namely, A , B and C and all the captions start with the words machine tools , which indicates that only the specified machines or their likes are machine tools. 11. Secondly, the Exclusion clause under Heading 84.45 of the CCCN have been inserted as a matter of clarification and not for the purpose of treating the machinery covered by the Exclusion clause as machine tools. This will be clear from the examples given thereunder, which include, inter alia, testing machines (heading 90.22) also, by no stretch of imagination can testing machines be treated as machine tools. 12. As indicated in the order-in-original, in the trade parlance, machine tool is known as a stationary power driven machine for shaping, cutting, turning, boring, drilling etc. of solid parts specially metals, and machines for producing raw materials for such parts are not machine tools according to the general usage of the term in the machine tool and machine building industry. This concept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading No. 84.45 of Explanatory notes to CCCN at page 1324 of volume 3 which reads as follows : 84.45 - MACHINE TOOLS for working metal or metal carbides, not being machines falling within Heading No. 84.49 or 84.50 (in capital letter) ....................................................... In general, the machine tools in question remains classified in the heading even if specialised for a particular industry (e.g. Agriculture, clock or watch making, Textile industry, motor car manufacture, preparing printing plants or cylinders). However certain machine tools are covered more specifically by the headings of the nomenclature example type founding machines (Heading 84.34) casting machine (Heading 84.43) rolling mills (Heading 84.44) testing machines (Heading 90.22) etc." 17. In view of the above wordings it is clear that rolling mills are also included in Machine Tools even though they are more specifically classified under the Heading 84.44. We are unable to accept the contentions of the learned SDR that the exclusion clause under heading 84.45 of the CCCN have been inserted as a matter of clarification and that it is not for the purpose of treating the machinery cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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