2015 (8) TMI 1048

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....plier known as M/s. Texchemie, Hong Kong (hereinafter referred to as 'M/s. Texchemie' for short). These were 23-24 years old machines which were exported to M/s. Texchemie by M/s Moojin International Corporation, Korea (hereinafter referred to as 'M/s. Moojin' for short). M/s. Moojin supplied 12 Jacquard Control Device Reading System, one Reading System and one Card Pressed System. The assessee herein, thus, purchased 12 sets of second hand embroidery machines from M/s. Texchemie and 12 Jacquard Control Device Reading System from M/s. Moojin. It is not in dispute that these second hand embroidery machines were non-computerised. The second hand embroidery machines as well as Jacquard Control Device Reading System were importe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled." The CESTAT has held that the two articles, viz., old mechanical embroidery machines on the one hand and the Jacquard Control Devices System on the other, were not independent and complete by themselves and were incomplete or unfinished articles. It is also found, as a fact, that the Jacquard Control Devices System were installed on the textile machines after importation and customs clearance at the premises of the appellant and only thereafter, the said machines have become computerised textile machines. It was argued by Mr. Vikram S. Nankani, learned senior coun....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion and not with reference to the purpose for which the goods have been imported or the use to which such goods are put to after importation." We are in agreement with the aforesaid view taken by the CESTAT. A reading of the decision of the CESTAT would further demonstrate that the CESTAT was conscious of the fact that there can be a situation where a particular machine is brought in an unassembled form and in such a case, it can still be considered as computerised if the ingredients thereof are satisfied. This aspect is again dealt with in detail by the CESTAT. However, on the facts of the present case, it has come to the conclusion that even this aspect is not satisfied. In order to avoid repetition of what the CESTAT has observed, ou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e considered is whether the goods as presented can be considered as computerized embroidery machines, unassembled. The H.S. Explanatory Note to Rule 2(a) reads as follows: - "1. The second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same headings as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport. 2. This Rule also applies to incomplete or unfinished articles presented unassembled or disassembled provided that they are to be treated as complete or finished articles by virtue of the first part of this Rule. 3. For the purposes of this Rule, "articles p....