Classification of endless stainless steel band for leather machinery treated as a machine part, not an excluded metal belt.

Imported stainless steel endless band for a rotary ironing and plating machine was treated as a machine part, not as an endless belt excluded by Note 1 of Section XVI. The article was described as a chrome-plated, mirror-finished band specially made to form the working surface of the machine drum, and not as a belt of metal wire or strip ordinarily used for power transmission. Because the exclusion did not apply, Note 2(b) of Section XVI required classification of the item with the machine as a part suitable solely or principally for that machine. The goods were therefore classifiable under Heading 8453.90, and the departmental classification was set aside.

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Issues: Whether the imported stainless steel endless band for a rotary ironing and plating machine was classifiable under Heading 8453.90 as a part of machinery for working leather, or under Heading 7314.19 by reason of Note 1 of Section XVI excluding endless belts of metal wire or strip.

Analysis: The goods were described as a stainless steel band, endless, chrome plated and mirror finished, specially made for use in a rotary ironing and plating machine for leather. The exclusion in Note 1 of Section XVI applies to endless belts of metal wire or strip, which are ordinarily used for transmission of power. The imported item was found to be a band forming the working surface of the machine drum and not a belt of the excluded kind. Since the goods were not hit by the exclusion, Note 2(b) of Section XVI applied, under which parts suitable for use solely or principally with a particular machine are to be classified with that machine.

Conclusion: The imported goods were not covered by the exclusion in Note 1 of Section XVI and were classifiable as parts of machinery under Heading 8453.90, in favour of the assessee.

Final Conclusion: The appeal succeeded and the classification adopted by the department was set aside, with consequential relief.

Ratio Decidendi: Where an imported article is not an excluded endless belt of metal wire or strip, but is a specially designed part used solely or principally with a particular machine, it is classifiable as a part of that machine under the relevant heading.

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