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TMI Blog1993 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... line and except for die-head all parts have been imported. The die-head is the only part which is interchangeable and all other parts are specially designed for the system for production of multi-layer co-extruded film and the end-product cannot be produced without any one of these parts and these parts are not of any material use in isolation. As per Note 5 to Section XVI machine means any machine, apparatus or appliance of a kind falling under Section XVI and as per Note 3 to Section XVI composite machine consisting of two or more machines fitted together to form a whole and other machines adopted for the purpose of performing two or more complementary or alternative functions are to be classified as consisting only of that component as being that machine which performs the principal function. The impugned machine parts as a whole perform the function of multi-layer co-extruding machine and are, therefore, classifiable as such under the heading and are also eligible to benefit of Notification No. 125/86-Cus. The appeal is accordingly allowed." 3. We have heard Shri B.K. Singh, ld. SDR for the revenue and Shri D.B. Shroff, Id. Advocate for the importer. 4. Shri B.K. Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parlance, the entire plant imported do not come with the ambit of extruder machine. He relied on the ruling rendered by Tribunal in the case of Asian Cables Corporation v. Collector of Customs, 1993 (63) E.L.T. 640, wherein it has been held that Notification No. 40/78-Cus., dated 1-3-1978 applied only to plastic extruder 152 mm sq. diameter and not to Electrical Control drives and ancillary equipment and spares, imported alongwith the said plastic extruder 152 mm sq. diameter. In support of his argument that notification requires to be strictly construed, Shri Singh relied on the following rulings : 1. Quality Steel Tubes (P) Ltd., Kanpur v. Collector of Customs, Bombay - 1987 (30) E.L.T. 447 2. Indye Chemicals, Ahmedabad v. Collector of Central Excise, Ahmedabad - 1986 (25) E.L.T. 318 3. Nayek Associates v. Collector of Central Excise, Calcutta - 1985 (21) E.L.T. 819 4. Collector of Central Excise, Baroda v. Sarangpur Cotton Mills, Ahmedabad - 1988 (33) E.L.T. 470 As regards, his plea pertaining to commercial parlance, he has relied on the following ruling 1. Plasmac Machine Co. Pvt. Ltd. v. Collector of Central Excise - 1991 (51) E.L.T. 161 (S.C.) 2. Collector of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India Others -1982 (12) E.L.T. 53 para 8 (Bombay). 6. We have carefully considered the submissions made by both the sides and perused the documents, technical literature, expert s opinion and the citations relied before us. 7. The goods in question is described in the Bill of Entry as Multi-layer (5 layer) Co-Extruding Machine . While the quotation of Brimco Plastic Machinery (P) Ltd. dated 1-6-1989 describes the machinery as Brimco multi-layer BRCE-5/MF Plant for the production of five layer co-extruded film with polymer technology Inc USA 5 Layer Die , the quotation of Klockner Windsor India Ltd., dated 18-5-1992 described the goods as Klockner Windsor Multi-layer Film Plant . The ld. SDR has relied on these descriptions in the invoices and has argued that this is a sufficient proof of market/trade parlance and commercial understanding to indicate that the goods are not satisfying the description of S. No. 32 of Notification No. 125/86-Cus., dated 17-2-1986, which reads Multilayer Coater/Extruding Machine . The definition of Extruder as appearing at page 808 of the Webster s Dictionary is also relied, alongwith the definition as appearing at page 283 of McGraw Hill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication of compressive forces. Most metals can be extruded, although the process may not be economically feasible for high strength alloys". 8. The ld. SDR has emphasised that by these definitions, the entire plant is excluded and the benefit cannot be granted. This argument would have been very much appealing and acceptable, if the notification had restricted the description to extruding machine only. In the context of the description as appearing in Notification 40/78-Cus., dated 1-3-1978 which reads Plastic Extruder above 150 mm sq. diameter, the Tribunal in the case of Asian Cables Corporation, has held that the notification s description being restrictive, the electrical control drives ancillary equipment and spares could not be said to be covered by the description of the notification. Therefore, this ruling relied by the ld. SDR is not applicable to the facts of the present case, in the context of the description being different in the notification. Ld. Advocate pointed out that the Bench had taken a different view on this aspect in the case of Industrial Cables (India) Ltd. (supra). As we are not dealing with this controversy pertaining to the description of Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that for interpreting any expression used in a notification, the legislative meaning, besides dictionary technical meaning and the words as understood in common usage can be adopted, to interpret the said word or expression or phrase. The description in the notification is Multilayer coater extruding machine . These words have to be understood in the manner in which it is understood technically as well as in trade. If the understanding in the trade, as well as in technical sense is to mean that the machine includes, a whole lot of interconnected components and parts, to form an integrated plant; as is in the present case; then, it follows that the term machine defined in the Section Note, is also a pointer to such an understanding, having been adopted by the legislature. 10A. Now, let us examine as to whether the imported item satisfies the description in the notification. The Appellant stated that the multi-layer co-extruded machine is a machine which manufactures multi-layer plastic film by the co-extruding process. The raw material is extruded by five extruders which feed the die to form liquid film which is further cooled by a cooling ring, and guided by a guiding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilayer Film comes out, is cooled by means of cool air from a Cooling Ring is further supported for a vertical take-off formed by means of adjustable-collapsible boards, drawn by NIP Rollers located at the top of the take-off tower, treated, slit open into two separate parts and wound as separate films on two winders. The extrusion die is a speciality highly skilled, high technology engineering product and as such most of the manufacturers of extrusion equipments buy a Die from parties specialising in die manufacturing and quite often, give a option to their customer to buy a Die of his choice from any source of his choice. In fact, even in India, manufacturers of Extrusion equipment like Kolsite and Windsor, do import a T-Die for the production of flat films or lamination even though they have more than 20 years experience in the field of manufacture of processing equipments. Even though Die/Moulds form an important part of plastics processing Equipments, being an interchangeable item of a machine, is treated separately even for the purpose of classification and Import Duty. For example. Injection Moulding Machine, Blow Moulding Machine, RIM Machine, Thermoforming Machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leaning and baked goods bags. A large amount of film is used in agricultural and construction applications such as ground cover for mulch and fumigation and for water and wind burners. Coextruded blown film in 3 to 5 layer structures is used for snack food, cereal, meat and other food packaging. Process Melted polymer supplied by the extruder(s) is formed into a very thin wall. Upward flowing annulus by the die and exits into an annular cooling air stream supplied by the air cooling ring. Air also is fed through a hole in the die to inflate the tube and expand it to the desired diameter. Once the process is stabilized, the inside air is stagnant and no more inflation is needed (unless internal cooling is also used). The balance of the polymer flow and cooling air flow maintains the proper position of the maximum expansion zone of the bubble above the die. Because the film is unsupported in the cooling stream, resins most frequently used are more viscous, and melt temperatures are kept low to maintain melt strength. These factors, coupled with the need to form the polymer to a uniform flow very-thin-walled annulus, create higher extrusion pressure than what is encountered in oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 17-2-1986/355/85-Cus., dated 6-12-1985 as Aseptic packaging material is admissible to them. 6. As per the Department the machine is essentially a laminator and extruder is only a part of the same. As per the appellant the machine is essentially a multi-layer coater/extruder which is envisaged under the said Notification No. 250/88-Cus., dated 16-9-1988 and the so-called lamination function is not strictly a lamination function, but is covered by the term extrusion coating . 7. In support of the said plea the appellants have quoted extensively from the book The Wiley Encyclopedia of Packaging Technology. As seen from the said book page 289 Extrusion coating is a process in which an extruder forces melted thermoplastic through a horizontal slot die onto a moving web of material . The said chapter entitled Extrusion coating further speaks of Equipment for extrusi ..... 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