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2016 (12) TMI 431 - CESTAT MUMBAI

2016 (12) TMI 431 - CESTAT MUMBAI - TMI - Benefit of Notification No. 21/2002 dated 1.3.2002, Sr. No. 425(2) - classification of imported goods - 4000 pieces of timing belts - classified under Chapter Heading 84 or under Chapter 40 of the Customs Tariff Act? - Held that: - it is undisputed that the exemption Notification No. 21/2002 under Sr. No. 425 is available to the goods falling under Chapter 84, 85 or 90 - However, in the Entry No. 2, the exemption is provided to parts of the machine. - .....

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cified or in any other heading, it would come within the purview of Notification provided it is part of the main equipment. - In the present case, the timing belt is undisputedly part of the Draw Texturising Machine, which is evident from the certificate issued by the jurisdictional excise authority under the provisions of Customs (Import of Goods at concessional rate of duty for manufacturing of excisable goods) Rules, 1996. Therefore, whether the timing belt falls under Chapter 40 or chapt .....

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i Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri S.P. Mathew, Advocate with Shri Ajay Singh, Advocate for Appellant Shri S.J. Sahoo, AC (AR) for Respondent ORDER Per Ramesh Nair This appeal is filed by the appellant, M/s Silvassa Machines, against Order-in-Appeal No. 62/2004 TE ACC dated 29.6.2004 passed by the Commissioner of Customs (Appeals), Airport, Mumbai. 2. The facts of the case is that the appellant has imported 4000 pieces of timing belts and sought classificatio .....

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.P. Mathew, learned Counsel for the appellant submits that without prejudice to the submissions on classification even if it is held that the classification of the timing belt is under tariff chapter heading 40, the benefit of notification is available to the subject goods for the reason that there is no dispute that the timing belt is indeed a part of the Draw Texturising Machine. He submits that as per relevant entry of the Notification of Sr. No. 425 parts for manufacture of machinery or equi .....

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engine which is eligible for the exemption notification. This judgment of the Hon'ble Supreme Court is directly applicable in the present case as irrespective whether the timing belts fall under Chapter 90 or under Chapter 84, 85 or 90 being parts is specified in the notification, the exemption is available. He also placed reliance on the Board Circular No. 60/95 dated 6.6.1995, wherein considering the judgment of Jain Engineering (supra), it was clarified that so long if the item is specifi .....

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rd, he submits that the appellants goods does not fall under transmission or conveyer belt or belting as the timing belt is not for the purpose of conveying any material, the exclusion is provided only for the belts which is used as a conveyor. He further submits that as per Section Note 2(B), if the parts are suitable and used solely or principally with a particular kind of machine, the said parts are to be classified with machines of that kind. As per this Section Note 2(B), the goods of the .....

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ifically mentioned for the purpose of machines as well as parts. Therefore, there is no doubt that whether machine or parts, it should fall under Chapter 84, 85 or 90. The appellants goods is classifiable under Chapter 4010. Therefore, the same is not eligible for the exemption notification. He submits that the judgment of the Hon'ble Supreme Court in the case of Jain Engineering (supra) relied upon by the learned Counsel is not applicable in the present case for the reason that in the judg .....

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therefore, the exemption on the product of chapter heading 4010 is not available. 5. We have carefully considered the submissions made by both sides. We find that it is undisputed that the exemption Notification No. 21/2002 under Sr. No. 425 is available to the goods falling under Chapter 84, 85 or 90. The exemption entry is reproduced below: - 425 84, 85 or 90 The following goods for use in man-made or synthetic fibre or yarn industry, namely:- (1) Machinery or 5% equipment specified in list 45 .....

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preme Court observed as under: - 10. In view of our finding that the Notification exempts also parts of the engines mentioned in Paragraph 2 of Column (2) of the Table, in order to avail of the benefit of the exemption granted by the Notification, it has to be proved that the parts in respect of which the exemption is claimed, are parts of the internal combustion piston engine, as mentioned under Heading No. 84.06. Some of such parts may have been included under Heading No. 84.63. In other words .....

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e contention of the Customs authorities that the article, which is provided under another Heading other than Heading No. 84.06, will not get the exemption as provided in the Notification, is not readily understandable. When the Notification grants exemption to the parts of the engines, as mentioned under Heading No. 84.06, we find no reason to exclude any of such parts simply because it is included under another heading. The intention of the Notification is clear enough to provide that the parts .....

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ing, it would come within the purview of Notification provided it is part of the main equipment. In the present case, the timing belt is undisputedly part of the Draw Texturising Machine, which is evident from the certificate issued by the jurisdictional excise authority under the provisions of Customs (Import of Goods at concessional rate of duty for manufacturing of excisable goods) Rules, 1996. Therefore, whether the timing belt falls under Chapter 40 or chapter 84, the same is part of the Dr .....

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