TaxTMI 
TaxTMI 
2001 (6) TMI 601
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....ording to the ACC, in the process adopted by the coater, a polymer precursor (organic liquid) is electrically heated and gas evaporated to create a plasma (ionised form of vapour), and this plasma is deposited on the substrate in the form of coating which hardens the material, imparts optical and electrical properties to the material and makes it wear and tear resistant. They had sought its classification under sub-heading No. 8419.89 of the Customs Tariff. The Commissioner of Customs (Appeals) had confirmed its classification under sub-heading No. 8479.89 of the said Customs Tariff. 2. The matter was heard on 26-4-2001 at Kolkata when Shri S.K. Bagaria, Advocate, referred to the product literature at page 26 of the paper book. The ....
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.... to deposit a variety of coatings for technological applications". 4. In their letter dated 11th September, 1997, the ACC explained that the machine was designed to deposit polymer precursor (organic liquid) on materials (substrates) to be treated by an exclusive process of heating and vapourising the precursor. It consisted essentially of a vacuum chamber containing a plasmatron source and a magnetron gun. The polymer precursor is electrically heated in this chamber and gets evaporated to create plasma (ionised form of vapours of the precursor) with the help of DC or RF voltage. A suitable bias (electrical charge) was applied to substrate to get plasma deposited on the targeted material. This plasma formed chemical bond with target....
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....le system the precursor is converted into nano composite (particles of atomic level) which imparts special properties to the material treated. Thus the system not only creates a coating on the material being treated by deposition of plasma, but also hardens the material and form a chemical bond with the precursor at atomic level. With this special treatment, the material becomes resistant to wear and tear resulting in longer life and also imparts optical and electrical properties desired in aerospace applications." 5. From the above description, it is seen that the argument that with such processes the targeted material was treated through heating and vapourising is not correct. 6. Heading No. 84.19 covers "Machinery, plant ....
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....equipment : 8419.81 - For making hot drinks or for cooking or heating food 8419.89 - Other 8419.90 - Parts" In the present case, the coater imported was a coating equipment for the deposition of thin film the on the materials. The targeted materials, as such, were not subjected to any treatment by this machine. The material coated was not subjected by the coater to any process involving a change of temperature. The change of temperature was not in the material coated but in the coater itself to make the precursors fit for deposition on the targeted material. The heating of the targeted material could be just to facilita....
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.... in the light of the coverage under that heading. 8. Heading No. 84.79 is a residuary entry under Chapter 84 of the Tariff. It covers "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter". This heading, among others, covers general purpose machines. From the Harmonised Commodity Description and Coding System (HSN) Explanatory Notes, it is seen that such misc. machinery as machines for coating welding electrodes, machines for coating photosensitive emulsions on to a backing, machinery for cask tarring or coating etc. were covered by Heading No. 84.79. On the other hand, according to the HSN, Heading No. 84.19 covers "Machinery and plant designed to submit materials (soli....