LexM/S. WESTERN INDIA PLYWOODS LTD. versus COLLECTOR OF CUSTOMS, KOCHIN
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A B M/S. WESTERN INDIA PLYWOODS LTD. v. COLLECTOR OF CUSTOMS, KOCHIN OCTOBER 7, 2005 [RUMA PAL AND S.H. KAPADIA, JJ.] Customs Tariff Act, 1975--SH 8439.91 and SH 8479.89-Jmport of Pulp making machinery-Machinery comprising of five components including C motor vibrator with actuator-Classification of motor vibrator with actuator- CEGA T classifying it under residuary heading 8479.89-Challenged by the importer-Held: Residuary heading is applicable only if machinery does not fall within any other heading-,-The function of Motor vibrator with actuator is to regulate .the flow of wood chips into screw feeder at a predetermined rate and therefore it is not a prime mover as held by CEGAT-This aspect D requires in-depth examination-Matter remanded back for reconsideration. Appellant imported a complement of pulp-making machinery for conversion of wood-chips into pulp. The said machinery c_omprised of five components, namely, defibrator, screw feeder chutes, motor vibrator with 11ctuator, sealing water system and high temperature protection E equipment. CEGAT classified the imported motor vibrator under CTA: 8479.89. In appeal to this Court, appellant contended that the motor vibrator works in conjunction with the defibrator in feeding the wood-chips into F the screw feeder at a pre-determined rate, hence constitutes an integral part of the pulp-making machinery and is classifiable under CT A: SH 8439.91 and not under CTA: SH 8479.89. G H Allowing the appeal and remitting back the matter to CEGAT, the Court .HELD: l. In the matter of Classification, unless the department is in· a position to establish that the goods iri question can by no conceivable process of reasoning be brougllt under CTA:SH 8439.91, resort cannot be had to be residuary heading 8479.89. 1220-G, H; 221-AI 218 -; WESTERN INDIA PLYWOODS LID. •·.COLLECTOR OF CUSTOMS, KOCH!N 2 J 9 2.1. The residuary item is applicable only if the machinery in question A does not fall within any other heading. It is well settled that the application of the residuary tariff entry must always be made with a good deal of caution as it is attracted only when no other provision expressly or by necessary implication applies to the goods in qu~stion. In the matter of classification, identification of an entity is the primary step. Identification B is concerned with goods and not with the description of goods. The description of goods would b~ relevant for the application of a particular tariff entry to the ·i'!Jported goods. In several cases, a single tariff item refers to a large number of goods of different types. It is not possible to encapsulate them in completely comprehensive titles. Therefore, the titles - of sections, chapters and sub-chapters are for ease of reference. A note in C a section or a chapter'is for that section and that chapter alone. [221-B, C, DJ 2.2. The tribunal has failed to consid.er the various provisions of section XVI and chapter 84 as appearing in the CTA and in HSN. Note 2(b) of section XVI lays down that in the absence of a specific heading, a D part suitable for a particular machine is classifiable under the heading applicable to that machine. Section XVI in •CT A and in HSN is captioned "machinery and mechanical appliances". Section XVI makes a distinction· between "machinery" and "machines". Further, according to note 7 to chapter 84, machines used ·for more than one purpose have to be classified E according to their principal purpose. Therefore, note 7 classifies "machines" according to their functions. Where a function is relevant for classification and where a machine is capable of performing two or more complementary or alternative functions, they have to be classified according to their principal purpose. In the present case, the motor vibrator with actuator re_gulates the flow of wood-chips into screw feeder F at a pre-determined rate and, therefore, it is not a prime-mover only, as held by the tribunal. This aspect ne_eds in-depth examination. Lastly, section XVI of HSN covers mechanical or electrical machinery. It is not confined to machines. In the present case, the appellant imported a full complement of pulp making machinery and it submits that the motor G vibrator with actuator is an integral part of the pulp-making machinery. In the explanatory notes to the HSN, it is made clear that items falling under headings 84.25 to 84.78 would cover machines which are classifi
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