TMI Blog2015 (8) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... te by themselves and were incomplete or unfinished articles –Jacquard Control Devices System were installed on textile machines after importation and customs clearance at premises of appellant and only thereafter, said machines have become computerised textile machines – Tribunal was conscious of fact that there can be situation where particular machine is brought in unassembled form and in such case, it can still be considered as computerised if ingredients thereof are satisfied – However, on facts of present case, it has come to conclusion that even this aspect is not satisfied – Thus, no merit found in appeal – Decided against assesse. - Civil Appeal No. 6341/2004 - - - Dated:- 22-7-2015 - Mr. A.k. Sikri and Mr. Rohinton Fali Nariman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the aforesaid machines imported by the assessee can be treated as computerised embroidery machines. The Commissioner, after adjudicating the matter, held that the old machines were non-computerised and merely because the Jacquard Control Device Reading System was installed in these machines after its import into India thereby making the same as computerised machines, would not give it a character of computerised embroidery machines at the time of import. The Customs, Excise Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT') has affirmed the aforesaid view of the Commissioner resulting into dismissal of the appeal filed by the appellant-assessee against the order of the Commissioner. It is this judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dgment, in the following words: - Based on these facts, it is not difficult to identify the goods for what they are. As noted in the aforecited decision of the Australian Tribunal, the classification of the goods has to be done with reference to the state or condition of the goods at the time of importation and not by reference to the purpose of the importer or of the purchaser. The Australian Tribunal further goes on to say that regard must be had to the characteristics of the goods themselves as they would present themselves to an informed observer. The learned consultant for Revenue has also emphasized the word 'as presented' in GIR 2(a). We have no doubt in our mind that as presented the goods were a collection of old and u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jacquard Control Devices. At no point of time before the importation, the new Jacquard Control Devices have been installed on the old mechanical embroidery machines. As such, these goods can not be called computerised embroidery machines in dis-assembled condition as declared. A plea has been made on behalf of the appellants in the course of hearing to consider the goods as computerised embroidery machines in unassembled condition. In this context we have examined the text of GIR 2(a). The first part of this rule says that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or finished article has the essential character of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state. Unassembled components of an article which are in excess of the number required for that article when complete are to be classified separately. 4. Cases covered by this Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g. Section XVI and Chapters 44, 86, 87 and 89). 5. In view of the scope of the headings of Sections I to VI, this part of the Rule does not normally apply to goods of these Sections. The General Explanatory Note to Section XVI reads as under: - For convenience of transport many machines and apparatus are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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