Customs exemption for industrial stapling machines turns on packing-machine use and the continuing force of Tribunal precedent.

Industrial stapling machines were discussed as eligible for customs exemption as packing machines where they could be used in packing cases, even if they also served as office stationery or otherwise fell under a different tariff heading. The note states that an earlier Tribunal ruling continues to operate with full force unless set aside in proper proceedings, and its ratio cannot be disregarded merely because an appeal has been filed before the Supreme Court. On that basis, the machines were treated as qualifying for exemption and the refusal to follow the earlier Tribunal order was described as unsustainable.

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Issues: Whether industrial stapling machines were entitled to the benefit of the customs exemption notifications as packing machines, and whether the earlier Tribunal ruling remained binding merely because the Department had preferred an appeal to the Supreme Court.

Analysis: The imported goods were described as industrial stapling machines. The earlier Tribunal decision had held that staplers capable of use in packing cases could qualify as packing machines for the purpose of the exemption notifications, even if they were also usable as office stationery articles or could fall under another tariff heading. A judicial order continues to operate with full force unless and until it is set aside in appropriate proceedings, and its ratio cannot be ignored on the sole ground that an appeal has been filed against it.

Conclusion: The stapling machines were held eligible for the exemption benefit, and the refusal to follow the earlier Tribunal order was held to be unsustainable.

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