9911796707
TMI Blog1998 (9) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... ances; (ii) MBJ l/1000 SEC 960 SATIN high performance label weaving loom with Rapier system type MUEGRIP including accessories and spares at l70647 Swiss Francs; and (iii) Programming Unit, including Camera MUCOMP - 3 at 98,470 Swiss Francs. 1.2. Goods have been described collectively in the invoice as "High Performance Label Weaving Looms with Rapier System Type MUGRIP 1 No. 640 Taffet and 1 No. 960 Satin and Programming Unit including Camera - MUCOMP 3 including spares and accessories" with a consolidated price. Individual prices as mentioned above in Para 1.1 above have been shown in the purchase order referred to in the invoice. 1.3. Authorities below have assessed the programming unit MUCOMP 3 under Heading 84.7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh precision reading of coloured photographs or coloured original drawings to create the needed design pattern using this system, availing the feature of window technique for text editing. (3) From the aforesaid details given in the catalogues, it becomes clear that MUCOMP 3 is a CAD work station for pattern creation and programming, whereas MUGRIP label weaving system is only a loom designed for manufacture of labels. MUCOMP 3 is neither a control for the loom, not even physically a part of the loom. Even functionally both are different, one being a weaving loom and other being a design work station. Although both may be used by an industry involved in label making, both are independent machines by themselves with their own function ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms Tariff Act, 1975. (4) In view of the above discussion, MUCOMP not being essential to the principal function (weaving of label by the loom) and the said MUCOMP being an auxiliary machine, by virtue of explanation to Note 5 of Chapter 84 given in HSN explanatory notes at S. No. (E) page 1139 wherein it is stated, "the automatic data processing machine must be classified separately in Heading 84.71 and the other machines in the heading corresponding to the function which they perform unless, by application of Note 4 to Section XVI or Note 3 to Chapter 90 the whole is classified in another heading of Chapter 84, Chapter 85 or of Chapter 90". the 'programming unit' is classifiable under Heading No. 84.71, and the MUEGRIP label weav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h benefit of Notification 59/87-Cus. read with 151/92 & 154/92 as originally assessed by the Appraising Group. Terms of Note 4 to Section XVI are clearly applicable to the classification of the goods imported. 3.2. As regards camera, ld. Advocate points out that its classification under a different tariff heading in Chapter 90 is merely on the ground that catalogue states it is an optional feature. Ld. Advocate submits that the camera cannot be classified as a video camera as has been done by the authorities below. It cannot be used as a photographic camera because it operates only to convert digital data to be ready to store in the disc of MUCOMP. The label design is scanned by the camera and it cannot be assessed as a photographic c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order (as extracted in Para 2.1 above). 4.2. In support of his proposition above, ld. JDR relies on Tribunal's judgment vide its Final Order No. 201/95-B2, dated 1-5-1995 in the matter of Hero Cycles (P) Ltd. v. C.C., Bombay. 5.1. We have carefully considered the pleas advanced from both sides. We observe that it is not disputed that MUCOMP 3 works on principles of a computer and it has all the features of a computer/Automatic Data Processing Machines. It is also priced separately as shown in the purchase order, though its price might have been included in a consolidated manner in the invoice along with the looms (Taffet & Satin). These factors, in our view, are not material for classification of a products. But it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for making jacquard designs meant only for weaving of fabrics (labels in the present case). Therefore, all the goods imported together, in the present case contribute to performing the principal function of weaving, a machine which is classifiable under Heading 84.46. We are, therefore, clearly of the view that all the goods are classificable under Heading 84.46, as was rightly made by the Appraising Group in the first instance. 5.3. Ld. JDR's reliance on the judgment of Hero Cycles (supra) is of no help to Revenue. In that case JAPAX wire cutting machine along with JAPT 2A/E were imported. It was claimed by the assessee (appellant therein) that JAPT 2A/E was not an independent machine and could not be operated without JAPAX NC. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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