TaxTMI 
TaxTMI 
1996 (8) TMI 105
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....78. 2.Facts are, in brief, these : Appellant firm has a factory for manufacturing sewing machines and accessories at Faridabad, with an approved capacity for making both domestic as well as industrial sewing machines. Appellant imports components for manufacturing such sewing machines from foreign suppliers. In October, 1977, appellant imported components of Industrial sewing machines - "rotating hooks complete with bobbin case", some of which required 1/3 H.P. and the others required 1/2 H.P. for their operation. According to appellant such imported components were dutiable at the rate of 40 per cent to customs duty as per Item 84.41(1) of the Customs Tariff Schedule, and hence, appellant was paying customs duty in accordance with it....
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....atisfaction when the difference was demonstrated before him, during the time of hearing. He noticed that "the rotating hook in the industrial machine had higher speed than the domestic sewing machine and if the rotating pin of the industrial sewing machines were to be attached to the domestic sewing machines, it would not withstand the speed and would break." Appellate Collector, therefore, was convinced that the hooks imported by the appellant were not for domestic sewing machines and were "solely and principally for use in machines operated with more than 1/4 H.P. and as such are classifiable under ICT 84.41(1)". 5.Government of India differed from the above conclusion, mainly on the premises that (1) "the rotating hooks complete with ....
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....icates that one category relates to a specific specie i.e. "domestic sewing machines", and the other is a general category i.e. "not elsewhere specified". Apparently the burden is on the revenue if they want to include the imported materials within the specific category to substantiate that those materials are such. 8.The very licence granted to the appellant contains a description which cannot normally be marginalised in reaching a conclusion on this disputed aspect. A list of components to be imported during the licensing period is appended with the licence. It starts with the description that the components are for industrial sewing machines. The first item in that list is "rotating hooks complete with bobbin case", which is the compo....
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.... of Central Excise & Customs or even what the Board of Central Excise and Customs would have thought about it because it is a legislative process and its interpretation should be in accordance with law. We cannot overlook the said circular which is, at least, binding on the department as they have made it known to all concerned that sewing machines covered by motors of 1/4 H.P. or more would fall outside the scope of the term "domestic sewing machines". It must be borne in mind that the heading concerned in the tariff i.e. 84.41 uses the expression "domestic sewing machines" and put all the other sewing machines in the residuary category "not elsewhere specified". When customs officials themselves have understood that sewing machines design....