Machine classification turns on real character and capability, not catalogue references, with residual heading applied here.

Classification of an imported hand-operated knitting machine turned on its real character and capability, not on catalogue references, price, or occasional household use. The machine's ability to produce sophisticated designs and its industrial use did not make it a domestic knitting machine; it was therefore classifiable under the residual heading for machines not elsewhere specified. The attempt to invoke Interpretative Rule 3 on the basis of doubt was rejected because that rule applies only where goods are genuinely classifiable under both competing headings.

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Issues: Whether the imported hand-operated knitting machine with punch cards, Model KH 840, was classifiable as a domestic knitting machine under Heading 84.37(2) or as a machine not elsewhere specified under Heading 84.37(1).

Analysis: Classification depended on the real character and capability of the machine rather than on isolated references in the catalogue, its price, or the possibility of occasional household use. The relevant enquiry was whether the machine could properly be treated as a domestic knitting machine. On the material produced, the machine was capable of producing a variety of sophisticated designs and was shown to be used for industrial purposes as well. Even so, the Tribunal found that these features did not make it a domestic machine. The decision also rejected the attempt to apply Interpretative Rule 3 merely because of doubt, holding that such a rule applies only where the goods are truly classifiable under both competing headings.

Conclusion: The machine was not a domestic knitting machine and was correctly classifiable under Heading 84.37(1), in favour of the assessee.

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