TMI Blog1994 (12) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... fied by us as Tariff Item 84.31 of the 1st Schedule to the Customs Tariff Act, 1975 as it stood prior to its amendment on 28-2-1986, the import duty payable thereon is only as provided thereunder. Appeal allowed. - 2288 (NM) of 1986 - - - Dated:- 14-12-1994 - R.M. Sahai and N. Venkatachala, JJ. [Judgment per : Venkatachala, J.]. This appeal under Section 130E of the Customs Act, 1962 is directed against the Order No. 234/1986-B2 rendered on 10th April, 1986 by the Customs, Excise Gold (Control) Appellate Tribunal, New Delhi - CEGAT , in CD (SB)(T) Appeal No. 1933 of 1983 (B-2). 2. Whether there was justification for the CEGAT to classify the article Granite Press Roll under Import Tariff Item No. 68.01/16(1) of the 1st Schedule to the Customs Tariff Act, 1975 as it stood prior to its amendment on 28-2-1986, as against its classification made by the Collector (Appeals) under Import Tariff No. 84.31 thereof, is the question which needs our consideration and decision in this appeal. 3. The appellant, a Company incorporated under the Companies Act, 1913, has two paper manufacturing Units in India. As `Granite Press Roll , which was required by the appellant to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble materials agglomerated with mineral binders, mineral wools; expanded mineral materials; articles of other mineral substances not elsewhere specified or included : 22F 23C,51 Not elsewhere specified (a) 100% Grinding stones grinding wheels and the like of natural stone, of agglomerated natural or artificial abrasives, and segments or other finished parts of such stones and wheels but excluding hand polishing stones, whet stones, oil stones, and hones." (a) 40% SECTION XVI MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF NOTES This Section does not cover (a)............! ! ! ! (o)............ Subject to Note 1 to this Section, Note 1 to Chapter 84 and 2. Note 1 to Chapter 85, parts of machines not being parts of the articles described in Heading No. 84.64 or parts of the following articles falling within Heading No. 85.18/27, namely (i) insulators or insulated electric wire and the like, (ii) carbon articles used for electrical conduit tubing purposes, or (iii) electrical conduit tubing and joints therefor are to be classified according to the following rules : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery but only a part of such machinery. There is no immutable rule in the Customs Tariff that all parts of a machine must be assessed under the heading for that machine. On the contrary, statutory Notes 1 and 2 in Section XVI, Note 1 in Chapter 84 and Note 1 in Chapter 85, which have an overriding effect over the headings themselves, lay down in general the order of priority or classification of parts in the following sequence :- (1) Parts made of certain materials like mineral products, glass, ceramics, plastics etc, and parts of general use made of base metals are to be classified in the respective material composition heading. (2) Subject to (1) above, parts having a specific heading for themselves in Chapters 84 85 are to be classified under that heading. (3) Other parts, if suitable for use solely or principally with a particular kind of machine are to be classified within the heading of that machine. (4) All other parts are to be classified in heading No.84.65 or 85.28." 5. The respondents are canvassing for the course at (3) above. But that is permissible only if the prior options at (1) and (2) above are not available. No heading which is specific for Granite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery. The very name of the article Granite Press Roll is also suggestive of the fact that it is the stone part which is the major and the important component. We have, therefore, no hesitation in saying that it is the stone component which gives the goods their essential character. As such, applying Rules 2(b) and 3(b), the goods fall for classification in Chapter 68 and by virtue of Note 1(a) to Chapter 84 they stand excluded from that Chapter." 9. As is seen from Preamble to the above discussion in para 4 of the order of CEGAT, what has made it (CEGAT) not to classify `Granite Press Roll , machinery part of paper making or finishing, the imported article or goods under Heading No. 84.31 in Chapter 84, is its view that there were contrary rules in statutory Notes 1 and 2 in Section XVI, Note 1 in Chapter 84 and Note 1 in Chapter 85 which had the overriding effect on the Headings themselves. Such contrary rules which according to it had the overriding effect over the Headings themselves are those specified in sequence by it in para 4 of the discussion itself as rules 1 to 4. Again, as seen from the discussion in para 5 of the order, CEGAT has found rules for the interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady excerpted by us. 12. What, then, cannot be ignored is the requirement of the provision in Note 2 to Section XVI, that subject to Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85 parts of machine (not being excepted items) are to be classified according to the rules given thereunder as (a), (b) and (c). What Note 2 to Section XVI says, in other words, is that machine parts in Section XVI, which are not covered by articles specified in Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85; are to be classified according to rules given under Note 2 to Section XVI itself, that is, rules (a), (b) and (c) thereof. 13. Coming to Rule (a) of Note 2 to Section XVI which is also excerpted by us already, goods of a kind described in any of the Headings of Chapters 84 and 85 (other than Heading Nos. 84.65 and 85.28) are in all cases to be classified in their respective Headings. Then, coming to Rule (b) of Note 2 to Section XVI, which is also excerpted by us already, other part of goods of a kind described in any of the Headings of Chapter 84, if suitable for use solely or principally with a particular kind of machine (described in Chapter 84) is req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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