COLLECTORS OF CUSTOMS, BOMBAY versus M?S GRASIM INDUSTRIES LTD.

Citation: [2000] SUPP. 1 S.C.R. 261 · Decided: 11-05-2000 · Supreme Court of India · Bench: S.P. BHARUCHA · Disposal: Dismissed
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Judgment (excerpt)

COLLECTORS OF CUSTOMS, BOMBAY 
v. 
MIS GRASIM INDUSTRIES LTD. 
MAY 11, 2000 
[S.P. BHARUCHA, S.S. MOHAMMED QUADRI AND 
SHIVARAJ V. PATIL, JJ.] 
A 
B 
Customs Tariff Act, 1975-Heading 84.17(/) and 68.0I/16(1)-
Classification under-Held, if the goods in question are machinery, plant 
and similar laboratory equipment or parts thereof. they fall within Chapter C 
84 of the Act; but if they are millstones, grindstones or other articles that fall 
within Chapter 68, they get excluded from Chapter 84-lmport of four cases 
of hydrochloric acid synthesis unit of combustion chambers by the 
respondent-Classification of-Held, though the combustion chamber of the 
goods in question is made of graphite, the goods constitute a complete unit D 
and an equipment and thus there can be no hesitation in holding that the 
goods in question fall within Heading 84.17(1). 
The respondent imported four cases of hydrochloric acid synthesis unit 
of combustion chambers and claimed that they are classifiable under Heading 
84.17(1) of the Customs Tariff Act, 1975 being in the category of plants and E 
machinery. The Assistant Collector of Customs rejected the claim and 
classified them under Heading 68.01/16(1) of the Act. In appeal, the Collector 
of Customs (Appeals) classified the same under Heading 84.17(1) of the 
Customs Tariff Act thereby upholding the claim of the respondent. The 
appellant appealed before the Customs Excise and Gold (Control) Appellate F 
Tribunal which dismissed the appeal while confirming the order of the 
Collector of Customs (Appeals). Hence the present appeal 
On behalf of the appellant, it was contended that the respondent imported 
parts of machinery which were articles of graphite falling within Heading 
68.01/16(1) of the Act and as Note l(a) of Chapter 84 of the Act specifically G 
excluded articles falling within Chapter 68, they were wrongly held to be 
classifiable under Heading 84.17(1). 
On behalf of the respondent, it was contended that plants and machinery 
fell within Heading 84.17(1) of the Customs Tariff Act, 1975 and not within H 
261 
262 
SUPREME COURT REPORTS (2000] SUPP. I S.C.R. 
A Heading 68.01/16(1); that Note l(a) to Chapter 84 had no application to 
machinery or part of machinery covered by Heading 84.17(1) of the Act 
Dismissing the appeal, this Court 
HELD : 1.1. Though the combustion chamber of the goods in question 
B is made of graphite, they constitute a complete unit, consisting of three parts 
fitted with burners and other accessories forming part of synthesis unit of 
caustic soda plant and thus an equipment In that equipment hydrogen is burnt 
with chlorine and thereby a new product - hydrochloric acid - is produced. In 
view of this categorical finding, there can be no hesitation in holding that the 
C goods in question fall within Heading 84.17(1) of the Customs Tariff Act, 1975, 
unless it is shown they being millstones, grindstones and other articles 
falling within Chapter 68 have to be excluded from Heading 84.17(1) of the 
Customs Tariff Act in view of Note l(a) of Chapter 84. Obviously the articles 
in question are not millstones, grindstones or the like. The contention that 
D 
the goods in question fall within Chapter 68 has no substance. 
(266-F-G; 267-B-C) 
1.2. A perusal of the title of Chapter 68 of the Customs Tariff Act and· 
the description of the sub-heading shows that what is brought in thereunder 
are articles of stone plaster, cement, asbestos, mica or similar materials. 
There is no scope to bring within that Chapter machinery and mechanical 
E appliances and parts thereof. The title of Chapter 84 of the Customs Tariff 
Act leaves no room for doubt that the goods falling within it are boilers, 
machinery, and mechanical appliances and parts thereof. The description and 
the sub-headings enumerate various categories of machinery and appliances 
falling thereunder. There can be no controversy about the proposition that if 
F the goods in question are machinery, plant and similar laboratory equipment 
or parts thereof, they fall within Chapter 84 of the Act; but if they are 
millstones, grindstones or other articles that fall within Chapter 68 of the 
Act, they get excluded from Chapter 84. (268-C-D; 266-C-F] 
Ballarpur Industries Ltd. v. Collector of Customs, Madras. (1995) 75 
G E.L.T. 6 SC, relied on. 
Saurashtra Chemicals v. Collector a/Customs, (1997) 95 E.L.T. 455 SC, 
distinguished. 
Saurashtra Chemicals, Porabandar v. Collector of Customs, Bombay, 
H (
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