Bottling line inspection machine classified under Heading 8422 where checking function was incidental to packing operations

An inspection machine used in a form, fill and seal line for PET bottles was treated as part of the composite bottling system rather than a stand-alone testing instrument. Because its checking function was incidental to filling, sealing and allied packing operations, Heading 8422 applied and Heading 9031 was not sustainable. On that basis, the machine also qualified for exemption under Notification No. 21/2002-Cus., and the confiscation, redemption fine and penalties founded on the wrong classification could not survive.

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Issues: Whether the imported inspection machine was classifiable under Heading 8422 or Heading 9031, and whether it was eligible for the exemption under Notification No. 21/2002-Cus.?

Analysis: The imported machine was used in conjunction with the form, fill and seal line for inspection of PET bottles at the stage immediately after formation. The explanatory notes to Heading 8422 cover machinery used for filling, closing, sealing, labelling and allied packing operations, and also contemplate machines performing several related functions where additional operations are incidental to packing or bottling. The explanatory notes to Heading 9031, on the other hand, cover measuring or checking instruments and test benches of a stand-alone character, which did not describe the imported machine's function in the appellant's production line. The machine's role was not independent of the bottling process and it operated as part of the composite bottling system.

Conclusion: The machine was correctly classifiable under Heading 8422 and was eligible for the benefit of Notification No. 21/2002-Cus.; the classification under Heading 9031 was not sustainable.

Final Conclusion: The confiscation, redemption fine and penalties based on the incorrect classification could not survive, and the appeal succeeded.

Ratio Decidendi: A machine used as an integral part of a bottling line, where its checking or inspection function is incidental to the filling and sealing process, is classifiable under Heading 8422 and not under Heading 9031.

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