M/S. WESTERN INDIA PLYWOODS LTD. versus COLLECTOR OF CUSTOMS, KOCHIN

KAPADIA, J. Whether, in the facts and circumstances Customs, Excise and Gold (Control) Appellate Tribunal to as "the tribunal") was right in classifying "motor-vibrator under residuary sub-heading 8479.89 of Customs "CTA "), is. the question which arises for determination filed by the assessee against the impugned judgment of 10.11.1999.

p. 220, margin C

The appellant herein imported a complement for conversion of wood-chips into pulp. The said five components, namely, delibrator, screw feeder with actuator, sealing water system and high temperature According to the appellant, the function of the conjunction with the delibrator in feeding the feeder at a pre-determined rate. According to motor vibrator works in conjunction with the integral part of the pulp-making machinery.

p. 220, margin E

It is the case of the appellant that the said is classifiable under CTA: SH 8439.91 whereas it is classifiable under CTA: SH 8479.89.

p. 220, margin G

We quote hereinbelow relevant headings: "Heading 8439.91: - Parts of machinery cellulosic material. Heading 8479.89: - Machinery and mechanical appliances having individual functions, not specified or included anywhere in this chapter."

pp. 220–221, margin G

It is evident from the above that the latter heading is a residuary item which is applicable only if the machinery in q~estion does not fall within any other heading. It is well settled that the application of the residuary tariff entry must always be made with a good deal of caution as it is attracted only when no other provision expressly or by necessary implication applies to the goods in question. [See: Bharat Forge and Press Industries (P) Ltd. v. Collector of Central Excise, reported in (1990) 45 EL T 525). In the matter of classification, identification of an entity is the primary step. Identification is concerned with goods and not with the description of goods. The description would be relevant for the application of a particular tariff entry to the imported goods. In several cases, a single tariff item refers to a large number of goods of different types. It is not possible to encapsulate them in completely COlllprehensive ~ titles. Therefore, the titles of sections, chapters and sub-chapters are for ease of reference. A note in a section..Qr.a_9hapter is for that section and that chapter alone.

p. 221, margin B

The basic question which was required to be examined by the tribunal was - whether the entire complement of pulp-making machinery imported as a single entity constituted one single item consisting of separate components. In the present case, the tribunal has classified the imported motor vibrator in CTA: SH 8479.89 solely on the basis of clause (5) of the explanatory notes to the HSN, which reads as follows:

p. 221, margin D

"5. Vibrator Motor consisting of an electric motor with eccentric discs fitted to the protruding ends of the shaft, generating radial vibrations which are transmitted to the apparatus or appliance (chutes, bins, hoppers, conveyors, compacting appliance, etc.) to which the vibrator motor is fixed."

p. 221, margin F

In our view, the tribunal has failed to consider the various provisions of section XVI and chapter 84 as appearing in the CIA and in HSN. Note 2(b) of section XVI lays down that in the absence of a specific heading, a part suitable for a particular machine is classifiable under the heading applicable to that machine. Section XVI in CT A and in HSN is captioned "machinery and mechanical appliances". Section XVI makes a distinction between "machinery" and "machines" (See: Note 5 to .according to note 7 to chapter 84, machines used for more have to be classified according to their principal purpose. classifies "machines" according to their functions. Where for classification and where a machine is capable of performing complementary or alternative functions, they have to be to their principal purpose. In the present case, the motor regulates the flow of wood-chips into screw feeder at and, therefore, it is not a prime-mover only, as held aspect needs in-depth examination. Lastly, section mechanical or electrical machinery. It is not confined present case, the appellant imported a full complement machinery and it submits that the motor vibrator with part of the pulp-making machinery: In the explanatory is made clear that items falling under headings 84.25 machines which are classifiable by reference to the field they are used, regardless of their partict1lar functions. also not been considered by the tribunal.

pp. 221–222, margin G

As stated above, in the matter of classification, is fh a position to establish that the goods in question can process of reasoning be brought under CTA : SH 8439.91, had to the residuary heading 8479.89.

p. 222, margin D

On account of non-consideration of various aspects we set aside. the impugned judgment and remit this c_ase its decision in accordance with law. Accordingly the appeal no order as to costs. D.G.

p. 222, margin E