TaxTMI 
TaxTMI 
1997 (2) TMI 322
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....omers as per their requirements and decorative designs. In order to meet the twin objectives of manufacturing special sizes of packing materials, that is collapsible tubes, and to impart on them decorative designs, the Technocrats of the Unit decided to import a single homogeneous machine for performing both the functions of manufacturing tubes and printing designs thereon. The appellants placed an order on M/s. Ossberger-Turbinenfabrik Gmbh, West Germany, for the supply of type DUO-30 Injection Blow Moulding Machine with its accessories which include a decorating unit type SD-3 appropriate to the above Pressblower type moulder adapted for decorating plastic tubes and tubler products of sizes ranging from 12 mm x 55 mm to 35 mm x 165 mm length. The suppliers accepted the order for the above machine which they shipped on 26-6-1986 by the Vessel S.S.Conscience, Rotation No. 711/86 from the Port of Hamburg. 3. Along with the Bill of Entry, they also submitted before the proper officers of customs, the supplier's Invoices No. IV-86248/V-86249, dated 24-6-1986 and the manufacturers' literature explaining technical characteristics of the machine. In the bill of entry, the appellant....
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....rating unit as explained in the manufacturers' literature produced before him. In fact, there is no finding of the Collector of Customs (Appeals) in this regard. The order, therefore, reflects lack of application of mind. 5. The Collector of Customs (Appeals) has held that the classification of the two units, namely, moulding machine and the decorating unit under the same heading is permissible only if the assembly answers to the definition of composite machines as contained in Note (3) of Section XVI of the Tariff. While arriving at this conclusion, the Collector of Customs (Appeals) has placed reliance on Explanatory Notes to the Harmonised Commodity Description and Coding System for interpretation of Note (3) of Sectional Notes. The appellants say that the Collector (Appeals) has erred in law by relying on the Explanatory Notes to the Harmonised Commodity Description and Coding System which are not statutorily applicable to the notes under Section XVI of the Customs Tariff of India. In the Customs Tariff, according to Note (3) under section XVI, composite machines are deemed to consist of two or more machines fitted together to form a whole. According to note (4) under Sec....
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....ff of India, the decorating unit in question would merit classification under the heading 84.77.10 along with blower moulding machine because of their technical characteristics and functions discharged by them. 7. It may be seen from the manufacturers' literature that the blower type DUO-30 and the Decorating Unit type SD-3 together form a complete tube production line with an annual output of about 5 million tubes. In fact, the literature specifically says that the tube production line is composed of the Press blower and the decorating unit type SD-3, both the machines being connected by storage conveyor and operating in continuous process to produce plastic tubes of the sizes ranging from 12 mm x 55 mm to 35 mm x 165 mm. A perusal of the literature would show that the press blower injection moulding machine is designed to operate in conjunction with its small decorating unit SD-3 and the features are such that the tubes are transported to the pick up place of the decorating unit and further that these are in-built arrangements for storing the tubes in the system when the printer is pre-occupied. The speed adjustment and operational features of the printer have a direct bear....
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.... opinion, the fact that both of them are required and have to work in conjunction to produce the final product or perform complimentary functions is by itself not sufficient to treat them as a single composite machine. 13. In the catalogue produced before us, the photograph, features and functions of these two machines have been shown but the learned counsel has not been able to throw light on any aspect or feature which would go to show that the two together would constitute a single composite machine. The nearest this catalogue comes to describing their complimentary and continuous functioning is as follows : "The complete tube production line with an annual output of above 5 millions of readily decorated plastic collapsible tubes is composed of the PRESS BLOWER Injection blow moulder DUO-30 and the small decorating unit SD-3. Both machines are connected by a storage conveyor and produce plastic tubes of PE and PP of sizes from 12 mm x 55 mm cylindrical length to 35 mm x 160 mm cylindrical length in a continuous process of manufacture and decoration. The plain tubes conveyed via the storage bar of the Small Decorating Unit are pre-treated at the first station in the corona....