Machinery classification under Customs Tariff Chapter 84 prevailed for a complete synthesis unit over Chapter 68

Imported goods forming a complete hydrochloric acid synthesis unit were held classifiable as machinery under Heading 84.17(1) rather than as articles under Heading 68.01/16(1). Chapter 84 covers machinery and mechanical appliances, while Chapter 68 is confined to articles of stone, plaster, cement, asbestos, mica and similar materials; Note 1(a) of Chapter 84 excludes only millstones, grindstones and other articles falling within Chapter 68. Because the goods were not shown to answer that description and were not merely spare parts, the machinery heading applied and the importer's classification was upheld.

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Issues: Whether the imported hydrochloric acid synthesis unit of combustion chambers was classifiable under Heading 84.17(1) of the Customs Tariff Act, 1975 or under Heading 68.01/16(1) of the Customs Tariff Act, 1975.

Analysis: Chapter 68 covers articles of stone, plaster, cement, asbestos, mica and similar materials, whereas Chapter 84 covers boilers, machinery, mechanical appliances and parts thereof. Note 1(a) of Chapter 84 excludes only millstones, grindstones and other articles falling within Chapter 68 from classification under Chapter 84. The imported goods were found to constitute a complete unit, namely an equipment forming part of the synthesis unit, and they were not shown to be millstones, grindstones or articles of the kind covered by Chapter 68. The distinction from earlier decisions lay in the nature of the goods, since those cases involved spare parts or articles conceded to fall within both competing headings.

Conclusion: The goods were correctly classifiable under Heading 84.17(1) of the Customs Tariff Act, 1975 and not under Heading 68.01/16(1); the classification in favour of the importer was upheld.

Final Conclusion: The appeal failed because the imported goods were treated as machinery or equipment under Chapter 84 and not as articles falling within Chapter 68.

Ratio Decidendi: Where imported goods constitute a complete machinery or equipment and do not answer the description of articles excluded by the relevant chapter note, they are classifiable under the machinery heading of Chapter 84 rather than under the residual article heading of Chapter 68.

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