2005 (9) TMI 446 - AT - Customs

CESTAT upholds exemption for stitching machine needles & re-classifies fabric washer as industrial washing machine.

The Appellate Tribunal CESTAT, CHENNAI upheld the Commissioner (Appeals)' decision to grant exemption for stitching machine needles under Notification No. ... Needles of stitching machine - Notification No. 11/97-Cus. Issues: Revenue's appeal against Order-in-Appeal granting exemption under Notification No. 11/97-Cus. for stitching machine needles and re-classifying fabric washer and fabric dryer.The judgment by the Appellate Tribunal CESTAT, CHENNAI, involved appeals by the Revenue against Order-in-Appeal Nos. 46 & 47/98, dated 28-9-1998. The respondents had imported machinery and sought the benefit of Notification No. 11/97-Cus., dated 1-3-97. The Commissioner (Appeals) partially granted relief to the respondents by allowing the exemption for stitching machine needles and re-classifying fabric washer and fabric dryer under a lower rate of duty. The Revenue contested this decision, arguing that the exemption for stitching machine needles and the re-classification of the washing machines were incorrect. The Tribunal reviewed Notification No. 11/97-Cus., dated 1-3-97, which exempts parts of stitching machines from duty. The Tribunal upheld the Commissioner (Appeals)' decision to grant the exemption for stitching machine needles, rejecting the Revenue's argument that needles are not parts of the stitching machine. Additionally, the Tribunal agreed with the re-classification of fabric washer and fabric dryer as industrial type washing machines by the Commissioner (Appeals), considering the nature of the import as a knit-wear unit. Consequently, the Tribunal dismissed the Revenue's appeals, affirming the decisions of the Commissioner (Appeals) regarding both issues. The operative part of the order was pronounced on 13-9-2005.