1987 (7) TMI 448 - AT - Customs

Imported staplers classified as packing machines eligible for concessional assessment under Customs Tariff Act

The appeals were dismissed, affirming the Collector (Appeals)' decision that the imported staplers are eligible for concessional assessment under ... Exemption Notification Issues Involved:1. Classification of imported stapling machines.2. Eligibility for concessional assessment under Notifications Nos. 47/84-Cus. and 16/85-Cus.3. Interpretation of the term 'packing machines' in the context of the Customs Tariff Act.Issue-Wise Detailed Analysis:1. Classification of Imported Stapling Machines:The appellants imported various types of stapling machines under three Bills of Entry. The Assistant Collector classified these machines under different headings of Chapter 84 of the Customs Tariff Act (CTA), rejecting the appellants' request for concessional assessment as 'packing machines' or 'case packing machines' under Notifications Nos. 47/84-Cus. and 16/85-Cus. The Collector (Appeals) later upheld the importers' contention that the goods were 'packing machines' eligible for concessional assessment, leading to the present appeals by the Revenue.2. Eligibility for Concessional Assessment:The Revenue argued that the imported stapling machines are used only for closing bags and not for filling materials, which should be the primary function of 'packing machines' as per the Customs Tariff Act. The Collector (Appeals) held that the term 'packing machines' was not defined in Notification 16/85 and should be interpreted according to trade parlance. The Revenue contended that the term should be interpreted with reference to the Customs Tariff Act and its chapter and section notes. They argued that the stapling machines should have functions similar to those falling under Heading 84.19, which specifically mentions 'packing machines.'3. Interpretation of the Term 'Packing Machines':The Collector (Appeals) considered the dictionary meaning of 'packing machines' and 'case packing machines' due to the lack of definitions in the Notifications. He concluded that a 'packing machine' is an instrument or product used to make things into a package or bundle. The Collector noted that polythene bags, often used for packing ready garments, are sealed by heat or stapling. The Collector extended the benefit of Notification No. 47/84 to models TH52 and TGD, considering their possible use in case packing despite the absence of specific mention in the leaflets.Separate Judgments:The Tribunal examined the arguments and literature, noting that the staplers imported have specific uses, including packing and case-packing. The respondents cited a judgment of the Madras High Court, which dealt with staple pins used in similar staplers for packing garments. The High Court noted that the Department conceded the use of staple pins in staplers for packing garments, supporting the respondents' argument.The Tribunal found no flaw in the Collector's reasoning and agreed that the staplers are capable of being used in packing. The Tribunal observed that staplers could be both office machines and packing machines, and the Notifications did not restrict goods from being classified under headings other than 84.19. The goods met the criteria of falling under Chapter 84 CTA and being packing machines or case packing machines.Conclusion:The appeals were dismissed, affirming the Collector (Appeals)' decision that the imported staplers are eligible for concessional assessment under Notifications Nos. 47/84-Cus. and 16/85-Cus.