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TMI Blog1993 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... query was raised by the department so as to know how they had claimed the classification of the machines under Heading 8477.20. They were also asked to explain as to why the machines should not be classified under Heading 8479.89. In reply to query raised by the Deptt. the importer vide their letter dated 4-5-1990 stated that the machine fell under Heading 8477.20. They were also asked to explain as to why the machines should not be classified under Heading 8479.89. In reply to the query the importer replied that the machine fell under 8477.20 and not under 8479.89 as the machine is a coater/extruder. They gave the detailed process description to justify their claim. They further added that since the machine is basically used for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd submissions made by the importer. Custom Tariff Heading 8477.20 under which the classification is claimed by the importer reads as Extruder . But Catalogue of the manufacturer describes the goods as model KEL 1200 as Extrusion Laminator Coating Machine. Also from the write-up it has been observed that in the intermediatory stage of the manufacturing process (after web passes through the anchor ceater unit and drying unit) molten LDPE or other laminate is extruded on the web in the form of sheet from the T. Die of the extruder unit. Therefore the extrusion is only an ancillary function in this lamination machine. The essential character of the machine is lamination and not that of extruder. Therefore party s claim for classification un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter going through its manufacturing process it is found that at one end there is unwinder from where one web is unwinded and then coated with adhesive in the process. The importer states it to be premier coating process. This film then passes through the drying unit and then goes to the Laminating unit. Molten LDPE here is extruded and laminated on the web in the form of a thin sheet from the T-Die of the extruder unit. The temperature of the laminator is over 300 C. There is another unwinder after this stage where one more web remains coated ab initio (contrary to the earlier unwinded where web gets coated in the process) and it is mounted on the laminating unit. The material extruded out of the extruding unit works as an adhesive agent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus it is evident that the machine imported by the importer does not perform only a coating job but it also does the function of lamination. The coating process involved in the manufacture of laminated plastic film is an ancillary process where the end-product of the machine is a laminated plastic film. This is further substantiated in the manufacturer s Catalogue produced by the importer where the Coating Machines have been described separately as multi-purposes coater model KGCD 1200 and a purely laminator are shown as dry laminator model KDRG 1200 dry and wet laminator model KDWL 1200. The catalogue describes the machine imported by the importer as Extrusion Laminator Coating Machine KCL 1200. The machine imported therefore is a combina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order-in-original accepting the contention of the importer that the machinery imported is essentially an extruder and not a laminator as held by the Adjudicating Authority. 4. We have heard both sides, who have reiterated the arguments before the lower authority. 5. The question to be considered is whether the extrusion lamination and accessories, imported by the respondent are classifiable under Heading 8477.20 as claimed by the importer, or under Heading 8479.89 as held by the learned Adjudicating Authority, and further whether the benefit under Notification No. 250/88-Cus. as a Multi-layer cooler/extruder machine is admissible to the same. Alternatively whether the benefit under Notification No. 125/86-Cus., dated 17-2-1986/355/8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Chapter Laminating Machinery in the said book. Much flexible packaging laminating today includes an extrusion process, which is not covered here. (i.e. the Chapter laminating machinery s) See extrusion coating; Multilayer Flexible packaging. 8. It is well settled that in interpreting the words in a taxing statute the regard has to be had not to the technical meaning of the terms ( lamination in the present case") but as to how it is understood by those conversant with the trade. 9. As seen from the extracts quoted above, The lamination in the present case is a part and parcel of Extrusion coating . On this view of the matter, the impugned goods are covered by the term Multilayer coater/extruder machine used in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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