TMI Blog1996 (11) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... er which according to the importers are part and parcel of the main machine, as they are not additional devices with machine and performing the same function as the main machine. However, by a criptic order the Assistant Collector rejected the same on the ground that the Notification covers only main machine and not to parts. He has opined that the parts are not covered by the Notification and the same are excluded from the purview of the said Notification. He has also observed that the claimant s reference to Chapter notes in this context is not relevant. 2. The learned Collector (Appeals) held that the Notification does not cover accessories or additional adjustment. The learned Collector (Appeals) has further observed that on scrutiny of relevant documents it is seen that the basic machine is complete and self contained and had been supplied with all essential accessories for a value of DM 37,900/- (Ex Works). The other goods are additional devices, which are optional extras; they are not parts/accessories of the basic machine. The goods are adjustable label magazine, additional label magazine for shaped labels, additional glue cylinders. Therefore, he held that these goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. v. Asstt. Collector of Central Excise as reported in 1993 (66) E.L.T. 594 and that of Ponds (India) Ltd. v. Collector of Central Excise as reported in 1993 (63) E.L.T. 3. 4. The learned DR submitted that the department has not examined the question of separate classification of these additional machines but they have classified under Heading 84.19 of the Customs Tariff. It is his contention that the principles underlying the classification of goods and more particularly Note 2(b) of Interpretative rules cannot be applied while examining the issue of granting the benefit of exemption Notification. He submitted that the items are extra optionals and not additional machineries. They are in the nature of parts, and hence the benefit of Notification had rightly been rejected. He submitted that the Section notes and Chapter notes cannot be applied for interpreting a notification. He relied on the ruling rendered in the case of Collector of Customs v. OEN India Ltd. as reported in 1989 (42) E.L.T. 235 and Guest Keen Williams Ltd. v. Collector of Customs as reported in 1987 (29) E.L.T. 68. 5. We have carefully considered the submissions made by both the sides and have perused the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive rules, section notes and chapter notes are required to be applied also. Moreover, the classification has not been done, as we noticed, on the basis of rules of interpretation, section notes and chapter notes, but it has been done on merits. Therefore, on its clear examination of the Notification, Bill of Entry and the Catalogue of the machine, it is clear that the items are not parts, but they are machinery by its performing the function of labelling bottles. Therefore, the benefit of the Notification cannot be denied to the items in question. In that view of the matter, the impugned order is set aside and the appeal is allowed with consequential benefit, if any. 6. While agreeing as to the conclusion, I would, with respect to the ld. Member (J), prefer to tread a different, even if a lonely, path to arrive at the same destination. 7. I am unable to persuade myself to agree to the proposition that Rules of Interpretation, Section Notes, etc., can be applied for interpreting Notifications. In a series of judgment Tribunal has held that Rules of Interpretation, Section Notes and Chapter Notes are applicable only to matters relating to classification. It was held in case of M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en they contain propositions wider than the case itself required." This was what Lord Selborne said in Caledonian Railway Co. v. Walker s Trustees - 1882 (7) A.C. 259 and Lord Halsbury in Quinn. Leathem (1901) A.C. 495 (502). Sir Frederick Pollock has also said : Judicial authority belongs not to the exact words used in this or that judgment, not even to all the reasons given, but any to the principles accepted and applied as necessary ground of the decision. 19. In other words, the enunciation of the reason or principle upon which a question before a Court has been decided is alone a precedent. The ratio decidendi is the underlying principle, namely, the general reasons or the general grounds upon which the decision is based on the test or abstract from the specific peculiarities of the particular case which gives rise to the decision. The ratio decidendi has to be ascertained by an analysis of the facts of the case and the process of reasoning involving the major premise consisting of a pre-existing rule of law, either statutory or judge-made, and a minor premise consisting of the material facts of the case under immediate consideration. If it is not clear, it is not the dut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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