1996 (7) TMI 288 - AT - Customs

Imported machine classified as fusing press under Heading 84.59(1) vs. appellants' claim for lower duty rate

The Tribunal upheld the classification of the imported machine as a fusing press under Heading 84.59(1), rejecting the appellants' claim for ... Fusing Press - VEIT Varioset Fusing Press Issues:Classification of imported machine under Heading 84.40(1) or 84.59(1) for duty assessment.Detailed Analysis:Issue 1: Classification DisputeThe appeal arose from the disagreement over the classification of the imported VEIT Varioset Fusing Press under Heading 84.40(1) or 84.59(1). The appellants claimed it should be classified under 84.40(1) for a lower duty rate, while the department classified it under 84.59(1) resulting in a higher duty payment.Issue 2: Submissions by PartiesThe appellants argued that the machine was a fusing press, not an ironing machine, as it was capable of fusing different materials at specific temperatures and pressures. They referenced the machine's catalogue, highlighting its features and versatility in fusing processes, supported by a customs notification for a lower duty on fusing presses.Issue 3: Department's PositionThe department contended that the imported machine, as per the pamphlets submitted, was a multipurpose ironing machine with various pressing options, emphasizing its adaptability and technical specifications. Reference was made to a previous Tribunal order classifying a similar machine under 84.59(1) instead of 84.40(1).Issue 4: Tribunal's AnalysisThe Tribunal examined the conflicting evidence presented, including the Bill of Entry, invoice, and pamphlets describing the machine. It noted discrepancies in the descriptions provided, with one pamphlet emphasizing fusing press features and the other focusing on ironing functions. The Tribunal highlighted the distinction between ironing and fusing processes, emphasizing the need for a factual verification before determining the correct classification.Issue 5: Legal PrecedentDrawing from a previous Tribunal order involving a machine capable of multiple functions, the Tribunal differentiated the current case, focusing on whether the machine should be classified as an ironing machine under 84.40(1) or a fusing press under 84.59(1). The Bill of Entry and the appellants' claim as a fusing press guided the Tribunal's decision to uphold the classification under 84.59(1).ConclusionBased on the evidence and submissions, the Tribunal rejected the appeal, affirming the classification of the imported machine as a fusing press under Heading 84.59(1). The decision emphasized the importance of aligning the description in import documents with the actual nature of the imported item for accurate classification and duty assessment.