1997(06)LCX0032

IN THE CEGAT, COURT NO. II, NEW DELHI

S/Shri S.L. Peeran, Member (J) and Shiben K. Dhar, Member (T)

STAR PAPER MILLS LTD.

Versus

COLLECTOR OF CUSTOMS, CALCUTTA

Final Order No. C/1534/97-B2, dated 6-6-1997 in Appeal No. C/1506/90-B2

CASE CITED

Sirsapur Mills v. Collector — 1996(01)LCX0015 Eq 1996 (083) ELT 0067 (Tribunal) — Relied on                             [Para 6]

Advocated By : Shri R. Swaminathan, Consultant, for the Appellant.

 Smt. R. Pant, SDR, for the Respondent.

[Order per : Shiben K. Dhar, Member (T)]. - This appeal is directed against Order-in-Appeal dated 16-10-1989.

2. The appellants imported calender rolls consisting of one number Swimming Roll as Bottom Roll with support, one number Swimming Roll as Top Roll with support, one number Aquitherm double-walled roll in second position (Drive Roll) with components, one number Aquitherm double-walled roll in third position (Non-drive Roll) with components. The appellants claimed classification of these under CTH 8439.20 on the ground that calender machines are parts of paper making machinery. This claim was rejected on the ground that calendering and other rolling machines are covered under CTH 8420.

3. Arguing for the appellants, the ld. Consultant submits that these calenders are specific components of paper making machinery. They are specifically designed for such machinery and function as a distinct section of the machinery. They, therefore, made classification as part of fourdrinier machine. He also cites extracts from Dictionary of Paper and Pulp of Paper Technology.

4. Ld. DR reiterates departmental arguments and submits that these are specifically covered under CTH 8420.

5. We have heard both sides. The goods admittedly are rolls in the calendering section of the machine. Our attention was drawn to the Dictionary of Paper Fourth Edition published under the Auspices and Direction of the American Paper Institute, Inc., 1980. This publication while referring to Fourdrinier Machines states :

“The fourth section of the machine is known as the Calender Section. It consists of from one to three calender stacks with a reel device for winding the paper into a roll as it leaves the paper machine. The purpose of calender stacks is to finish the paper, i.e., the paper is smoothed and the desired finish, thickness oir gloss is imparted to the sheet. Water, starch or other solutions, wax emulsions, etc., may be applied for additional finish. The reel winds the finished paper into a roll, which for further finishing either can be taken to a rewinder or, as in the case of some machines, the rewinder on the machine produces finished rolls directly from the machine reel.”

6. The impugned goods may form part of Fourdrinier Machine for paper making. There can be no manner of doubt about it. The question, however, is whether these should be treated as part of paper making machine or should be assessed in their own right as parts of calendering or rolling machine. The ld. Consultant placed considerable emphasis on the fact that these function as parts of calendering section of the paper making machine and therefore would merit classification as parts of the principal machine. The machine in fact cannot be visualised without these. If we, however, accept this proposition, we would have to ignore Note 2(a) of Section XVI. The goods would merit classification as parts of the principal machine only if application of Rule 2(a) is ruled out. This is not the case here. Since calendering machines are specifically covered under 8420, they would find their rightful place only under this item. The ld. Consultant pleads the case for classification under CTH 8439. Perusal of HSN Notes under 8439 indicates that these calender rolls are specifically excluded under the heading parts under 8439 (see page 1230 of HSN Notes). These notes indicate that such calender rolls would be classifiable only under 8420.

We also derive support for conclusion from this Tribunal’s order in case of M/s. Sirsapur Mills v. C.C., Madras - 1996 (083) ELT 67 where the question of classification of swimming rolls and accessories of calender stock of paper came up for consideration.

7. In view of this, we do not find any merit in the appeal and therefore we reject the appeal and uphold the impugned order.

Equivalent 1997 (94) ELT 637 (Tribunal)

Equivalent 1997 (021) RLT 0816 (CEGAT)