M/S BALLAR PUR INDUSTRIES LTD. versus THE COLLECTOR OF CUSTOMS (APPEAL), CUSTOMS HOUSE, MADRAS

Citation: [1994] SUPP. 6 S.C.R. 615 · Decided: 14-12-1994 · Supreme Court of India · Bench: R.M. SAHAI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

MIS BALLAR PUR INDUSTRIES LTD. 
v. 
THE COLLECTOR OF CUSTOMS (APPEAL), CUSTOMS HOUSE, 
MADRAS 
DECEMBER 14, 1994 
[R.M. SAHAI AND N. VENKA TACHALA, JJ.] 
Customs Tariff Act, 1975: First Schedule (as it stood prior to its 
amendment on 28.2.1986)-Import tariff-Item No. 84.31and68.01116(1) 
A 
B 
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Interpretation of-"Granite Press Ro/l"-Import of-Levy of duty-Held 
classifiable under tariff item No. 84.31 and not under item No. 68.01116(1). 
C 
The appellant-Company imported 'Granite Press Roll', whose 
function was to give final finish or polish to paper, to be use~ as a part 
of machinery in one of its paper manufacturing units. For levying duty 
on it the Collector (Appeals) classified it under Import Tariff item D 
No.84.31 of the First Schedule to the Customs Tariff Act, 1975. 
However, the Customs, Excise and Gold (Control) Appellate Tribunal 
classified it under Item No. 68.01/16(1). For coming to this conclusion, 
the Tribunal relied on Rules 2(b) and 3(b) of the Rules for the 
interpretation of Customs Tariff Schedule and held that item 84.31 was 
specific for paper making/finishing machinery but not for parts of such E 
machinery and there was no immutable rule in the Customs Tariff that 
all parts of a machine must be assessed under the heading for that 
machine. Further what made the Tribunal not to classify 'Granite 
Press Roll' under heading No. 84.31 was its view that statutory Notes 1 
and 2 in Section XVI, Note I in Chapter 84 and Note. I in Chapter 85 of 
the First Schedule which have an overriding effect over the headings F 
themselves lay down in general the order of priority or classification of 
parts. 
In assessee's appeal to this Court on the question whether the 
change of classification of 'Granite Press Roll' made by the Tribunal 
was uncalled for; 
G 
Allowing the appeal and setting aside the order of the Tribunal, 
this Court 
HELD: 1. 'Granite Press Roll' is to be classified under Tariff I~m 
84.31 of the 1st Schedule to the Customs Tariff Act, 1975 as it stood H 
615 
A 
B 
c 
D 
E 
F 
G 
616 
SUPREME COURT REPORTS 
[1994) SUPP. 6 S.C.R 
prior to its amendment on 28.2.1986. The import duty payable thereon 
is only 40% as provided thereunder. [625 F] 
2. The rules referred to by the CEGAT were rules which were non-
existent in statutory Notes 1 and 2 in Section XVI, Note I in Chapter 84 
and Note I in Chapter 85 of the First Schedule to the Customs Tariff 
Act, although the same were assumed to exist. Consequently, the 
Conclusion reached by the Tribunal in its order under appeal that the 
imported article 'Granite Press Roll' falls under Tariff item in Chapter 
68 is wholly wrong. [624 B to CJ 
3.1 The rules which govern the classification of machine-part like 
the 'Granite Press Roll' ought to be the rules contained in note 2 of 
Section XVI under Chapter 84 or Chapter 85 of the First Schedule to 
the Customs Tariff Act. [624 D] 
3.2 When Note 2 to Section XVI requires classification of parts of 
machines to be made according to rules given thereunder and when 
rule (a) thereunder requires goods (part of machine) of a kind 
described in any of the Headings of Chapters 84 and 85 (o.ther than 
Nos. 84.65 and 85.28) under respective Headings, every machinery for 
making or finishing cellulosic pulp, paper or paper-board, requires to 
be classified under Heading 84.31. 'Granite Press Roll' being a part of 
machine of goods 'Machinery for making or finishing cellulosic pulp, 
paper or paper-board' which is suitable for use solely or principally as 
machinery for finishing paper, it requires to be classified with machine 
described in the Heading 84.31, as required by rule (b) to Note 2 of 
Section XVI. [ 625 B to CJ 
3.3 CEGAT has gone wholly wrong in classifying that article under 
import tariff item No. 68.01/16(1) of the First Schedule to the Customs 
Tariff Act, 1975, particularly when that article could not have been 
regarded as an article of stone, as such, to become an excepted item 
under Note 2 to Section XVI read with Note l(a) to Chapter 84, 
· warranting its classification under Heading in Chapter 68 and 
according to rules governing classification of materials or substances or 
their parts. [625 E] 
CIVIL APPELLATE WRISDICTION: Civil Appeal No. 2288(NM) of 
1986. 
From the Judgment and Order dated 10.4.86 of the Customs Excise and 
Gold (Control) Appellate Tribunal, New Delhi in A.No.CD (SB) (T) 
H 
No.1933of1983-B-2, Order No.234/86B-2. 
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BALLAR PUR INDS. LTD. v. COLL. OF CUST
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