Functional classification of machine spares: projection lamps for a grinding machine were treated as essential component parts, not ordinary bulbs.

Projection lamps imported as spares for a grinding machine were classified by their actual function and construction, not as ordinary electric lighting bulbs. Because the lamps were specially designed for use only in the machine, formed part of its optical equipment, required a cooling arrangement, and could not serve general illumination, they were treated as essential component parts of machinery. Item 72(3) applied to such machinery components, while item 60(2) operated as a residuary entry for electric lighting bulbs. The lamps therefore fell under item 72(3) and not item 60(2), and refund was allowable.

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Issues: Whether projection lamps imported as spares for a grinding machine were classifiable under item 72(3) as component parts of machinery or under item 60(2) as electric lighting bulbs.

Analysis: The classification turned on the actual function and construction of the imported lamps. The materials showed that the lamps were specially designed for use only in the grinding machine, formed part of its optical equipment, required a cooling arrangement, and could not be treated as ordinary bulbs for general illumination. Item 72(3) covered component parts of machinery whose use as such was essential, whereas item 60(2) was a residuary entry for electric lighting bulbs. Since the lamps were essential component parts of the machine and possessed special characteristics not suited for any other purpose, they could not be brought under the residuary classification.

Conclusion: The projection lamps fell under item 72(3) and not under item 60(2); the assessee was entitled to refund.

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