TaxTMI 
TaxTMI 
1999 (11) TMI 582
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....ngs, Asstt. Collector confirmed wrong classification in r/o motor vibrator with actuator and sealing water system with pump motor and controls. He held that they were correctly classifiable under Tariff Item 84.79-89 and not under 84.39 as originally done. A short levy of Rs. 8,95,289/- out of the originally alleged short levy of Rs. 27,40,496/- was accordingly confirmed. In respect of the other items, the A.C. accepted that they were integral parts of the machinery, and therefore, original classification was correct. With regard to the two items alone, he held that these items have general use and therefore, should not be classified as parts of other machinery. Aggrieved by this order, the appellants approached the Collector of Customs and Central Excise (Appeals), Cochin. The Collector accepted the appeal and held that the goods in question were indeed integral parts of the machinery under import, and therefore, the original assessment was correct. Accordingly, he set aside the order of the Asstt. Commissioner. The Revenue is in appeal before us against the said order of the Collector, in the present appeal. 2. The observations and findings of the Collector (A) are reprod....
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....is also an integral part of the Defibrator and hence, assessment of this item should be as part of Defibrator unit. In view of this, the proposed assessment of the machine as a machine having individual function does not appear to be correct. 6. In the light of the above, I hold that the order of the original authority classifying both, the Motor Vibrator with Actuators and Sealing Water System with pump, motor and control is not correct. Accordingly, I set aside the order of the original authority and uphold the original classification." 3. The Revenue has submitted in the appeal that Collector (A) has erred in holding that Motor Vibrator with Actuator and Sealing Water System were not machinery for general use. Their grounds of appeal are reproduced below :- "1. The Collector (A) has erred in holding that Motor Vibrator with actuator does not have an individual function and is an integral part of the Defibrator. As per page 1314 of Explanatory Notes, Vol. 3 of Harmonized Commodity Description and Coding System published by Customs Co-operation Council a copy of which is enclosed marked Annexure 'E', the following are to be regarded as having 'individual fu....
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....tention specifically to the fact that HSN Notes to Section XVI 84.79 specifically mentions Vibrator Motor as a machinery of general use. The relevant portion of the Notes is reproduced below:- This group includes, for example: 1. .... 2. .... 3. .... 4. .... 5. Vibrator motor consisting of an electric motor with eccentric discs fitted to the protruding ends of the shaft, generating radial vibrations which are transmitted to the apparatus or appliance (chutes, bins, hoppers, conveyors, compacting appliance, etc.) to which the vibrator motor is fixed." 4. Ld. SDR also drew our attention to the decision of the CEGAT in Kumudam Printers (P) Ltd. v. Collector of Customs, 1992 (59) E.L.T. 568 (Tribunal) wherein the Tribunal held that ribbon for Photostat setting machine would not qualify for classification as accessories. 5. As against the aforesaid contentions of the Revenue, it has been submitted by the respondents that the import in question was a full complement of pulp-making machinery for conversion of wood-chips into pulp for the manufacture of hardboard. The machinery consisted of various equipments manufactured and adapt....
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.... classified and assessed separately. They have submitted that in the instant case, the entire machinery was charged together in the invoice No. 360036, dated 20-5-1992 of the supplier at the consolidated value of SDK 12 112450. The indicating values of spares and accessories separately in the invoice specification under "List of Spare Parts/Accessories to be imported for Wet Process Defibrator Unit L 42" did not mean that they were charged separately. They have also pointed out that 16 items figure in this list of spare parts and accessories supplied along with the goods. The Revenue has accepted all items other than two as eligible for assessment under the Accessories Rules. There was no justification for such a different and discriminatory treatment for two items alone as they also fall in the same category as accessories and spares. 7. The main issue in this appeal is whether Motor Vibrators with Actuator is to be assessed as parts of "machinery for making pulp of fibrous Cellulosic material" under Chapter 84.39 or under Chapter 84.79 as "machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter." The Revenue has ....