Wrapping machinery exemption extends to a machine with additional forming and cutting functions under customs classification.

A high speed automatic machine used for wrapping, and also for forming and cutting toffee, was treated by the Department itself as wrapping machinery under Heading 84.22 of the Customs Tariff Act. On that basis, the exemption under Notification No. 125/86-Cus. could not be denied merely because the machine performed additional forming and cutting functions. The article notes that the machine's essential character remained that of a wrapper, and that prior Tribunal reasoning on wrapping machines supported this construction of the notification. The Revenue's appeal was accordingly rejected.

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Issues: Whether the benefit of Notification No. 125/86-Cus. dated 17-2-1986 was available to a high forming, cutting and wrapping machine which performed wrapping as well as forming and cutting functions.

Analysis: The machine imported by the respondent was classified by the Department itself as wrapping machinery under Heading 84.22 of the First Schedule to the Customs Tariff Act. The record showed that, although the machine also performed forming and cutting of toffee, its essential character for classification remained that of a high speed automatic wrapper. Once the Department treated the goods as wrapping machinery for classification, it could not deny the exemption on the ground that the machine performed additional functions. The earlier Tribunal view in the cited wrapping-machine decision supported the same construction of the notification.

Conclusion: The benefit of Notification No. 125/86-Cus. could not be denied, and the Revenue's appeal was rejected.

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