Tariff classification of disused machinery: salvage imports were accepted under the claimed heading, with no additional duty levied.

Imported old and disused data-processing machines brought in "as is condition" for salvage of usable parts were classified under Heading 72(b), 72(3) or 72(6) of the Indian Customs Tariff, rather than Heading 73, because their true tariff character was governed by their condition and the supporting precedent accepted that classification. The goods were also held not to fall within Tariff Item 33D of the Central Excise Tariff, since disused salvage machines were not office machines for the purpose of additional duty. The Tribunal therefore modified the impugned orders in favour of the importers and set aside the levy of additional duty.

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Issues: (i) Whether the imported "as is machines" were classifiable under Heading 72(b), 72(3) or 72(6) of the Indian Customs Tariff rather than Heading 73; (ii) Whether the goods were liable to additional duty as office machines under Tariff Item 33D of the Central Excise Tariff.

Issue (i): Whether the imported "as is machines" were classifiable under Heading 72(b), 72(3) or 72(6) of the Indian Customs Tariff rather than Heading 73.

Analysis: The goods were old and disused data processing machines imported in "as is condition" for salvage of usable parts and were not in working condition. The classification question was answered by following the earlier decisions relied upon by the appellants, including the Tribunal's own prior view and the cited precedent, which supported treatment of such goods under the claimed headings rather than Heading 73.

Conclusion: The classification claimed by the appellants was accepted and the goods were held classifiable under Heading 72(b), 72(3) or 72(6), as applicable.

Issue (ii): Whether the goods were liable to additional duty as office machines under Tariff Item 33D of the Central Excise Tariff.

Analysis: The goods were disused machines imported for salvage and the precedent relied upon by the appellants supported the view that, at the relevant time, such goods did not fall within Tariff Item 33D. On that basis, the claim against levy of countervailing duty was accepted.

Conclusion: The goods were held not to fall under Tariff Item 33D and were not chargeable to additional duty.

Final Conclusion: The impugned orders were modified in favour of the appellants by accepting the claimed tariff classification and by setting aside the levy of additional duty on the imported goods.

Ratio Decidendi: Disused imported machinery brought in "as is condition" for salvage may be classified according to its true tariff character, and if it does not answer the description of office machines, additional duty cannot be levied under the corresponding tariff item.

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