Integrated machinery exemption extends to tray-packer when separate machines form one aseptic packaging production chain.

A tray-packer imported with aseptic packaging machinery qualified for Notification No. 125/86-Cus. because the equipment operated as one synchronised production chain for milk packaging. Although the tray-packer was separately described and worked after primary packing, the record showed it protected packed cartons from dust and moisture and was adapted to international pallet standards. The notification benefit could not be denied merely on separate description when the machinery set was functionally integrated for the same exempted process. The tray-packer was therefore treated as part of the aseptic packaging machinery and the concession applied to the entire set.

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Issues: Whether the tray-packer imported along with aseptic packaging machinery was entitled to the benefit of Notification No. 125/86-Cus. as part of the aseptic packaging machinery.

Analysis: The imported equipment comprised three coordinated machines forming one production chain for aseptic packaging of milk. The tray-packer operated after primary packing, but the material on record showed that the trays and shrink-wrapping protected the packed cartons from dust and moisture and were adapted to the international pallet standard. The benefit of the notification could not be denied merely because the middle-stage machine was separately described when the entire set worked in a synchronised manner for the same aseptic packaging purpose.

Conclusion: The tray-packer was held to be part of the aseptic packaging machinery and was entitled to the notification benefit.

Final Conclusion: The exclusion of the tray-packer from exemption was unsustainable, and the import was held to qualify for the concession on the entire machinery set.

Ratio Decidendi: Where separately described machines form a synchronised and functionally integrated set for the same exempted manufacturing process, exemption granted to the machinery extends to all essential components of that integrated set.

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