9911796707
TMI Blog1991 (7) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the respondents herein claimed its assessment under TH 84.56. The Assistant Collector of Customs, Bombay, who passed the order in assessment dated 2-3-1984 held after going through the leaflet produced by the appellants that the imported machine was designed for use in the grinding of (i) minerals (ii) plastics (iii) pharmaceuticals and (iv) chemicals. The said Asstt. Collector, therefore, observed that the imported machine finds application or is designed for use in various industries, namely, mineral, plastic, pharmaceutical, chemicals etc. It was also held that classification of machine did not depend upon the use to which importer put it but it depended upon its functioning, capabilities and various uses. Therefore, he assessed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ariff Heading, as contended by the respondents herein and the appellants before the said Collector, covered all types of grinding machines. Hence this appeal by the department with regard to the question of classification only. It is observed from the appeal memo filed by the department that they had not challenged the finding of the Collector (Appeals) on the question of allowing the discount. 2. Learned SDR, Shri S.K. Roy has reiterated the grounds of appeal. 3. The Appellant-Collector has observed that T.H. 84.56 is restricted, inter alia, to machine specifically designed for grinding of stones, ores or other mineral substances. The various types of machines included in T.H. 84.56 CTA are enumerated, according to him, on page 1355 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6) E.L.T. 341 (Tri.) = 1986 (8) ETR 241 [Collector of Customs v. Dura Foam Industries] and (3) 1980 (6) E.L.T. 735 [Hyderabad Asbestos]. 4. We have carefully considered the pleas advanced on both sides. On the question of classification of the machine under T.H. 84.56 we are of the view that the said Heading, inter alia, covers the machines for sorting, screening, separating, washing, crushing, grinding or mixing earth, stones, ores or other mineral substances, in solid form. The underlined words, mentioned above, indicate that the machineries covered by this Heading are used mainly in the extractive industries for the various treatments like sorting etc. given above of solid mineral products. Explanatory Notes to Heading 84.56 at page 135 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the present case. 4.1 We have next to consider the alternative contention of the Ld. Advocate for the respondents that the machine would fall under T.H. 84.59(2) because it is meant for production of a commodity. The appellant-Collector and the learned SDR representing him, have contended that the machine is not designed for the production of a commodity. It is merely meant for processing of the minerals and agricultural chemicals. Reliance has been placed in this connection on Explanatory Notes at page 1366, mentioned supra, under Heading 84.59. The learned advocate for the respondents, on the other hand, has stated that the product produced by the machine is a commodity and would, therefore, fall under T.H. 84.59( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would fall under the general description of T.H. 84.59. Question now that arises is whether the product brought into existence by the machine after grinding of minerals or chemicals is a commodity produced or it is merely a processing of a chemical or a mineral. In our view, no evidence has been led by the department that the product brought into existence by the machine after pulverisation of a chemical or a mineral is merely a processing of that chemical or a mineral and not a commodity. No evidence has been placed by the respondents either except placing reliance on a column in the catalogue which mentions 'Finished product'. Production of a commodity would mean as it is well-settled by now, bringing into existence a new commodity which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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