Tariff classification governs exemption: independent packing machines qualified, but a bottle-moving turntable fell outside the heading.

Exemption under a tariff entry was available only when the goods satisfied the relevant classification. The packing plugging table and automatic bung feeding machine were accepted as independent complete machines, supported by the chartered engineer's certificate, and the exemption was upheld because the department did not dislodge that finding. The packing turntable, however, was treated as only a device for moving bottles and not as performing filling, closing, sealing, capsuling, labelling, packing or wrapping under Heading 84.22; it therefore could not qualify for exemption merely because it was a complete machine. Relief was thus maintained for two items and denied for the turntable.

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Issues: (i) Whether the packing plugging table and automatic bung feeding machine were complete machines entitled to exemption under Notification No. 46/94-C.E. as goods classifiable under Heading 8422.90, and (ii) whether the packing turntable was classifiable under Heading 8422.90 so as to qualify for the exemption.

Issue (i): Whether the packing plugging table and automatic bung feeding machine were complete machines entitled to exemption under Notification No. 46/94-C.E. as goods classifiable under Heading 8422.90.

Analysis: The only controversy for these two items was whether they were parts of pharmaceutical packing machinery or independent machines. In the absence of material dislodging the findings below, and in view of the chartered engineer's certificate treated as reliable, they were accepted as independent machines rather than mere parts. Since the department did not establish otherwise, interference was not warranted.

Conclusion: The finding that these two machines were entitled to exemption was upheld, in favour of the assessee.

Issue (ii): Whether the packing turntable was classifiable under Heading 8422.90 so as to qualify for the exemption.

Analysis: The packing turntable was found to be only a device for moving bottles from one place to another. It did not perform any of the functions covered by Heading 84.22, namely filling, closing, sealing, capsuling, labelling, packing or wrapping. Even if it was a complete machine, it did not answer the tariff description and therefore could not be treated as goods classifiable under Heading 8422.90.

Conclusion: The packing turntable was held ineligible for the exemption, in favour of Revenue.

Final Conclusion: The appeal succeeded only to the limited extent of denying exemption to the packing turntable, while the relief granted for the other two machines was maintained.

Ratio Decidendi: Exemption under a tariff entry is available only where the goods satisfy the tariff description and the assessee establishes that the items fall within that classification; a machine performing a function outside the scope of the heading cannot obtain exemption merely because it is a complete machine.

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