TaxTMI 
TaxTMI 
2024 (7) TMI 766
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.... of Chinese Origin. As per Notification No. 57/2015-Customs(ADD) dated 04.12.2014, anti-dumping duty (ADD) @29% of landed value was applicable on plastic processing or injection moulding machines falling under Tariff heading 84771000, having clamping force equal to or more than 40 tonnes and equal to or less than 1000 tonnes. Accordingly, Ld. Additional Commissioner vide Order-In-Original No. MCH/ADC/AK/56/2020-21 dated 31.08.2020 rejected the classification declared by the Appellant under Chapter heading 84773000 and re-classified the said machine under Chapter heading 84771000; ordered to impose ADD @29% under S.No. 1 of the Notification No. 57/2015- Customs (ADD). He also ordered for confiscation of the machine valued at Rs. 2,84,78,876.....
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....sifiable under two or more different sub-heading there under, then also the General Rules, Rule 6 applies and not General Rules, Rule 3(a) provided the same goods are classifiable under two or more sub-headings at the same level. 2.2 He also submits that both the sub-heading 84771000 and 84773000 description are distinct equally specific; none is most specific or more general. Each is most specific and distinct, one as IMM (which does not fall under two or more sub-headings) and the other is BMM (which also does not fall under two or more sub-headings.) The IMM or the BMM are classifiable under two or more sub-headings; IMM is classable only under 8477 10 and BMM only 8477 30. There is case of two machines fitted together forming a whole, ....
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....se; there is proof that there is one function of injection moulding and the second function of blow moulding none being primary or secondary but complementary and sequential in tandem in continuing series of operation of IM and BM carried out together in a composite machine. The assessing authority has ignored the substance and picked only a part of the composite machine to suit his purpose. The Assessing Authority ought not to have ignored the fact that there is a composite machine and therefore, the said statutory Section and the Chapter Notes have to be applied in all earnestness. On the contrary the Assessing authority was duty bound to refer the Notes, apply the same and then determine whether the notes otherwise do not require the app....
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....ding Machine Model GZ-D 750 FSIII, the department stated that to tonnage of the machine is an importer declaration which the appellant has failed to declare at the time of filing of the documents and have intentionally attempted to avoid the payment of Anti dumping Duty on the goods in terms of Section 17 of the Customs Act, 1962. If as per the Section 28(1)(b)(i) or (ii) read with Section 28(2) post import clearance (upto 2 years) no notice is mandated to be served though duty not paid, short paid is fully recovered there is no question of misdeclatation and consequential penalty as far as the incorrect self-provided, that the selection of cases for verification shall primarily be on the basis of risk evaluation through appropriate selecti....
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....ed as under :- 8477 10 00 - Injection-moulding machines 8477 30 00 - Blow moulding machines 4.2 As can be seen from the above relevant tariff heading, the heading 84771000 deals with the Injection Moulding Machines and 84773000 deal with blow moulding machine. As per the submission of the Appellant, the disputed machine is a composite machine i.e two machines fitted together forming a whole, part of which is Injection Molding Machine (IMM) and remaining part is Blow Moulding Machine (BMM). As per revenue appellant is engaged in manufacture of pet preform through the function of injection moulding and the impugned machine has a primary function as injection mouding machine. Hence, classification of the impugned machine is under Tariff e....
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....ne i.e ISBMM and IMM are not the same. Clearly, the ISBMM machine imported by the Appellant is a composite machine comprising of IMM and BMM and cannot be classified under tariff entry 84771000. 4.5 Further Section XVI Notes 3 and 4 which is relevant in this matter read as under :- "3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 4. Where a machine (including a combination of machines) consists of individual components (whether....