TMI Blog1983 (3) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... as for the purposes of countervailing duty it was held to be falling under Item 51 of the Central Excise Tariff. The party was made to pay an amount of ₹ 94,625.77 on account of countervailing duty in addition to customs and other duties. Subsequently an application for refund was made on the contention that the imported goods were not liable to any countervailing duty, and that Tariff heading 51 had been wrongly applied. 3. This prayer for refund made by M/s. Lee Muirhead (I) Pvt. Ltd., Bombay on behalf of importers, namely, M/s. National Newsprint Paper Mills Ltd., was rejected by the Assistant Collector of Customs, Bombay by his order dated 12-6-1980 holding that goods imported were Norton grinder pulp stones. He further o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p stones and that these stones were used in the grinders of their ground wood machinery and were heavy grinding stones of a special type, not indigenously manufactured. 6. This revision petition has been received by the Tribunal, on being transferred by virtue of provisions of Section 131B(2) of the Customs Act, 1962, and is being disposed of as if it were an appeal filed before the Tribunal. 7. At the time of hearing, Shri D.N. Kohli, Consultant appeared for the appellant and argued that the imported goods were merely grinding stones not covered by Tariff Entry 51 and were in the nature of pulp stones employed in their wood grinding machines for the purpose of making pulp out of wood, required for the purpose of manufacture of newspr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that consequently the stand taken by the Department was unassailable. 9. He also referred to a book entitled Grinding Wheels and Machines by P.S. Houghton in which there was a specific heading at page 309 as wood of the following description : Wood Pulp-Grinding The abrasive wheel is used to grind logs of spruce, fir, or pine into pulp for paper making. The logs are first cut to length and barked, then pressed against the abrasive roll roughly 4 ft. in diameter and 5 ft. long. 10. We have taken into careful consideration the respective contentions canvassed on both sides and have gone through the impugned order-in-appeal as well as the adjudication order. We observe from these two orders that the goods have been positivel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 68.04 would reveal. It is pertinent to note that whereas in the Customs Tariff both these articles are mentioned in the relevant Tariff Entry, namely, 68.01/16 and it is obviously for this reason that the party has not disputed assessment to customs duty because they admit that these goods were in the nature of grinding stones, which are also covered by Tariff Entry 68.01/16, under which they were charged to customs duty, at the time of appraisal. 13. What they are contending right from the beginning is that so far as Central Excise is concerned, the entry under reference, namely, 51 which has been invoked for the purpose of countervailing duty has no reference to grinding stones and that it ends only with grinding wheels and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... like, has to meet before it becomes liable to duty under Item 51 of the CET. It is significant that this explanation chooses to expressly define the term. `grinding wheels and the like used in Item 51 and before it can be so treated under this Entry, it should perform one of the specified functions, such as grinding, sharpening, polishing, trueing and cutting of metals, stones, glass, plastics, ceramics, rubber, leather, mother of pearl, ivory and the like . 17. It thus becomes apparent that this Explanation has given a definite meaning to this term grinding wheels and the like and their meaning has been restricted both functionally as well as with reference to the material in relation to which they are used. 18. On a careful stu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... howover, we do not find it possible to agree with the appellant s contention that no countervailing duty was chargeable at all because even if these goods known as grinding pulp stones are not specifically provided in Tariff Entry 51 but still the description as given in the invoice and the notes appended by the party which are at page 8 of the file indicate that they are manufactured items. They would thus certainly go to Tariff Heading 68 for the purpose of assessment of excise duty, if manufactured in India, and by virtue of Section 3 of the Customs Tariff Act, countervailing duty will also be chargeable accordingly as if these were goods, falling under Tariff Heading 68. We accordingly allow the appeal partly, and direct consequential ..... X X X X Extracts X X X X X X X X Extracts X X X X
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