9911796707
TMI Blog1996 (11) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... Tips Setting Machine" for classification under Tariff Heading 84.59(2) and upheld the classification under Heading 84.59(1) of Customs Tariff Act, 1975. 2. In his brief findings, the learned Collector has held that the ultimate commodity manufactured by the appellant is not a new one. The function of the machine to attach rubber tips to pencils fed to it, would not bring any new commodity but the article continues to remain as pencil in the market for all intense purposes. Thus no commodity is produced by the machinery. 3. It is contended by the appellants in this appeal that the machine viz. `Ferrules and Rubber Setting Machine' is designed for the production of a `commodity'. They rely on the meaning given in the Websters Dic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is stated by them that even the improvement with an advantage of acquiring a new property would be covered by this heading in the tariff. The addition of a rubber eraser tip contributes to the production of a commodity which is in the trade parlance, a distinct and different kind of article as compared to the ordinary pencils without the rubber eraser tip. Therefore, they pleaded that the commodity produced by the machine is an independent commodity having a separate name and understood separately by customer and hence it is required to be classified under Heading 84.59(2) and not under Heading 84.59(1). They also relied on the judgment rendered in the case Collector of Customs, Bombay v. M/s. Dura Foam Industries (P) Ltd. as reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rely enhances the value of the pencil and the pencil remains as a pencil and nothing more and therefore, it cannot be considered that the imported machine is designed for the production of a commodity. 9. We have carefully considered the submissions made by both the sides and have perused the record. 10. The Tariff Entry 8459 along with subheadings are noted herein below. "84.59 Machines and mechanical appliances, having individual functions, not falling within any other Heading of this Chapter : (1) Not elsewhere specified 60% (2) Machines and mechanical appliances designed for the production of a commodity, machinery for treating metals, wood or similar materials, for stripping and cutting of tobacco leaf or for cutting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne is designed for production of the commodity namely, pencil with an eraser requires acceptance. In the case of Collector of Customs, Bombay v. M/s. Dura Foam Industries Pvt. Ltd. (supra), the Tribunal took a view that "foam cutting machine requires classification under sub-heading (2) of the Heading 84.59, as cutting foam blocks leads to the production of different foam products which are marketable. From that angle, the Tribunal held that there is no doubt that the machine is one designed for the production of commodities. The ratio of this judgment is applicable to the facts of the present case. Likewise, in the case of Collector of Customs v. Escorts Ltd. as reported in 1991 (54) E.L.T. 144, the Tribunal held that an Ultrasonic cleanin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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