TMI Blog1982 (12) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shriram Rayons. In their revision application, M/s. Shriram Rayons have explained that they are manufacturing rayon tyre yarn, cord and fabric. The yarn and cord are manufactured from wood pulp which is imported from the U.S.A. in sheet form. The wood pulp sheets are soaked in dilute caustic soda and the excess caustic soda solution is removed by pressing the sheets in a specially designed press. The machine used for carrying out this process is known as Steeping Press and the ram that they had imported is said to be a bar of cast iron being polished and within certain tolerance limits. The Steeping Press consists of a big chamber with a number of collapsible perforated compartments in which wood pulp sheets are placed and dilute caustic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng used in many different industries. It was, therefore, appropriately classifiable under Heading No. 84.59. The Appellate Collector observed that goods of a like kind or description must always be assessed in like manner whosoever may import them and whatever the individual variation of end-uses contemplated by the customer . For these reasons he rejected the appeal. 4. At the personal hearing, Shri T.C. Seth, appearing for the appellants, advanced three basic arguments, namely :- (i) The Steeping Press, of which the ram is a part, should fall under Heading No. 84.36 as machines for extruding man-made textiles . Although the Steeping Press by itself could not be termed as such a machine, the entire plant of which the Steeping Press ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow chart to illustrate the process of manufacture in the plant where the Steeping Press would be used. 7. Appearing for the Department Shri N.V. Raghavan Iyer submitted that the classification adopted, namely, under Heading No. 84.59(1), was correct. The ram was a bar of best iron, and a part of a hydraulic press. He pointed out the hydraulic presses are used in many industries, and referred in this connection to a text book titled Introductory Applied Physics by Harris and Hammerling, published by M/s. McGraw Hill. At pages 73 to 75 of this book reference was made to the use of hydraulic presses in various industries. 8. Elaborating on the scheme of Chapter 84 of the Customs Tariff Schedule, Shri Iyer pointed out that parts suitabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine within the meaning of Heading No. 84.38, since auxiliary referred to a supporting function, and of the same nature as the function of the main machine. Preparing the material for another machine to perform its function could not, according to him, be considered as an auxiliary function. In support of his arguments he referred to the examples given in Heading No. 84.38 itself, and also referred to the B.T.N. Explanatory Note (Vol. III, page 1299). 12. Shri Iyer accordingly submitted that since the other Headings of Chapter 84 which had been referred to were not applicable, the Steeping Press was appropriately classifiable under Heading No. 84.59. 13. With reference to Shri Seth s argument that the Press could be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Steeping Press is in itself a machine and cannot in itself be regarded as a machine for extruding man-made textiles. Shri Seth would like the Tribunal to consider it as a part of the entire plant, and to consider that plant as a machine for extruding man-made textiles , by invoking Note 3 to Section XVI. The Tribunal observes that what has been imported is a single and distinct article. The Section Note refers to the assessment of composite machines. It would be far-fatched and unjustified to bring in a hypothetical composite machine for the purpose of bringing the Steeping Press within the scope of Heading 84.36, when in fact what has been imported is not even the Steeping Press but only a part thereof, and then to treat the Steeping ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on application stage. The Tribunal would stress the desirability of assessees raising all relevant grounds before the lower authorities in the first instance, in their own interest as well as in the general interest of saving infructuous work at all levels. Although the objection of Shri Iyer to the consideration of this ground at the present stage has substance, the Tribunal would not like to ignore a point which might be material and has, therefore, considered this argument also on its merits. Even so, the Tribunal finds that the claim that the Steeping Press can be classified as machinery for treating metals, wood or similar materials lacks substance. Firstly, as pointed out by Shri Iyer, compressing the wood pulp for the purpose of sq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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