1997 (9) TMI 243 - AT - Customs

Tribunal upholds exemption for 'Doctors Blades' as part of paper making machinery.

The Appellate Tribunal CEGAT, New Delhi upheld the decision of the Collector, Customs (Appeals) in granting exemption under Notification No. 156/86-Cus. ... Classification Issues:Eligibility of 'Doctors Blades' for exemption under Notification No. 156/86-Cus.Detailed Analysis:The appeal before the Appellate Tribunal CEGAT, New Delhi involved the eligibility of 'Doctors Blades' imported by M/s. Mysore Paper Mills Ltd. for exemption under Notification No. 156/86-Cus., dated 1-3-1986. The importers initially did not claim the benefit of this exemption but later filed a refund claim asserting that the goods were eligible for the said notification. The Asstt. Collector rejected the claim, stating that it was unclear whether the blades were for a paper machine or a printing machine based on the catalogue and invoice. However, the Collector, Customs (Appeals) determined that the blades were for applications in a paper mill and extended the benefit of the customs notification to the importers.Upon hearing arguments from both parties, the Tribunal examined the relevant exemption Notification No. 156/86-Cus., dated 1-3-1986, which provided concessional customs duty rates for paper making machinery and component parts thereof classified under specific headings. The dispute centered on whether the 'Doctors Blades' imported were considered part of the paper making machinery. The Revenue contended that the blades were not part of the machinery, while the respondents, being a paper manufacturer, argued that the blades were indeed for use in paper making machines, not printing machines. The respondents supported their claim with an affidavit from their Regional Manager and a fax message from their supplier.The description of the goods in the Bill of Entry and the invoice indicated that the blades were for specific applications such as felt rolls and calender rolls in paper making machinery. Despite references to 'Doctors Blades Printing Machine IV,' it was clarified that the blades were for paper machine use, as supported by the Harmonised System Commodity Code and product literature detailing the suitability of the blades for paper machine requirements.The Tribunal delved into various definitions of 'doctor blade' from technical dictionaries and publications related to paper technology. These definitions highlighted the role of doctor blades in maintaining cleanliness, preventing material build-up, and controlling sheet movement in paper making machinery. The Tribunal concluded that the broad scope of the exemption notification encompassed paper making machinery and its component parts, including doctor blades, which were evidently used in paper making processes. Therefore, the Tribunal upheld the decision of the Collector, Customs (Appeals) to grant the benefit of the customs notification to the importers, rejecting the Revenue's appeal.