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TMI Blog2003 (3) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... and the claim with regard to second item was altered to chapter heading 3920.10, they filed refund application claiming benefit of classification under the Customs Tariff chapter heading No. 8439.99 with claim of benefit of Sl. No. 3 of the Notification No. 156/86-Cus. dated 1-3-1986 as amended which grants partial benefit to item falling under chapter heading 84.39 with description paper making machinery and components thereof. The ld. Commissioner after due consideration of the catalogue, technical literature, function of the item as part of paper making machinery upheld their contention. The findings recorded by him is noted herein below : I have seen the samples of the imported goods. I have also seen the technical literature submitted by the appellants before the earlier Commissioner (Appeals) as well as at the original stage. All these clearly shows that the imported goods are not in the nature of film at all. They are actually profiles made of polyethylene. These, profiles are designed and are meant for paper industry. Perhaps, the confusion arose because of the write-up submitted by the appellants at the time of import of the goods in which the imported goods had been d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the item is transmission or conveyor belts or belting of plastics of chapter 39, ld. DR had no answer for this, while respondent s representative filed a written submission along with catalogue and literature. It is submitted that the item in question is specifically manufactured in terms of the drawings and part number and used as parts of paper making machinery; that they are not foils of plastics as a film and also they are not in film rolls. They function as part of the paper making machine for dewatering the pulp so that the formation of the paper is achieved. It is supplied in sizes of 3750 mm length x 62 mm wide x 25 mm thick with different blade angles of deg and 2 deg as per drawing L-1513 - each 5 nos. for their paper machine no.3 and in size of 3800 mm length x 50 mm wide x 25 mm thick with three different blade angles of 1, 1.5 and 2 degrees as per drawing L5-260/3 each 40 nos. The catalogue at page 5 also states that the same is installed in CCESTILITE V20 and they are not used as transmission or conveyor belts or belting. The Commissioner, after noting about the entire product and the catalogue, has rightly upheld the contention in the light of the judgments noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to explain nor meet with the arguments of the respondents including the judgments cited by the Commissioner. He merely read out the grounds. It was for the Revenue to have shown that the item is a transmission or conveyor belts or belting of plastics of Chapter 39 to be excluded from note 1(a) of Section XVI which covers chapter heading 84. The item being parts of the paper making machinery and components thereof, therefore it has been rightly granted benefit of the notification in the light of the two judgements cited by the Commissioner (Appeals) which lays down significantly that components and spare parts are one and the same for the purpose of the notification. We have carefully considered the grounds and are satisfied that the Revenue has not made out any ground for interference with the order. The classification adopted by the Commissioner is in terms of prayer made by the importer in the impugned order under Customs Tariff heading 84.39 and granting benefit of Sl.No. 3 of the Notification No. 156/86 which is in order and that there is no need to interfere with the same. Thus, there is no merit in this appeal and hence it is rejected. Sd/- (S.L. Peeran) Member (J) 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal that from the catalogue it is seen that the foils are used as a cover to the fabric V belt of the paper making machine and that apparently the use of Polyethylene film is to enhance the lifespan of the fabric V belt. The catalogue further says that CESTILITE V-20 Polyethylene film rolls enhance the lifespan by 10 to 30% and also could be useful/compatible with fabric and wire surfaces and also better than other types of films normally used. They have further stated that from the above, it is seen that CESTILITE V-20 film is not an essential part of the paper/pulp making machine and that the said film is only an accessory to enhance the performance and lifespan of a part of Paper Making Machinery viz. Fabric V Belt or Conveyor belting. They have further stated that the imported goods are in the nature of film in rolls. The catalogue also says that about a minimum of 15 layers of films to be covered over the Fabric V Belt or Wire V Belt for effective advantage for increase in the life span of these V belts. Therefore, the layers of films covered over the V belt also acts as a belting . Belting of plastic of Chapter 39 is specifically excluded from the purview of C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under heading 39.20 or 39.21. Therefore, the order of the original authority is just and proper and cannot be assailed and the same is required to be restored. Accordingly I set aside the impugned order and allow the Revenue appeal. Sd/- (Jeet Ram Kait) Member (T) Dated : 29-7-2002 DIFFERENCE OF OPINION In view of the difference of opinion, the following questions arise for determination by the third Member. Whether the appeal is required to be rejected as held by Member (J) by holding that the classification adopted by the Commissioner in respect of the imported item under Customs Tariff Heading 84.39 is correct and the item is entitled for benefit of Sl. No. 3 of Notification No. 156/86-Cus., dated 1-3-86. Or Whether the appeal is required to be allowed by holding that the imported item has to be assessed only as film falling under heading 39.20 or 39.21 as held by Member (T) and that the importer is not entitled to the benefit of Sl. No. 3 of Notification No. 156/86-Cus. as amended as the item is neither paper making machinery nor components thereto. Sd/- (Jeet Ram Kait) Member (T) Dated : 29-7-2002 Sd/- (S.L. Peeran) Member ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different composition than Cestilite V-20. The foils are essential since the function of the foils in a paper making machine is to drain water from wet pulp so that formation of paper is achieved. He also said that the function and the essentiality of foil in paper making machine can be observed from the video film shown. The foils are not thin polyethylene rolls as presumed. Referring to the samples he also said that it can be seen that the foils cannot be supplied in rolls. He explained that from the video films it can be observed that the foils are stationary and the wire over the foils only is moving. Hence the foil is not transmitting wet paper pulp and so not a conveyor belt. Referring to the observations made by Member (T) that this incidentally helps in allowing the water to flow down from the wet pulp he said that this is not incidental action but an essential action to drain water from pulp. He also contended that the observations made by Member (T) that the machines can function without the goods imported is not correct. The foils are essential since the function of the foils in a paper making machine is to dewater the pulp so that the formation of the paper is achieved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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