Judgment:
1. This is an appeal filed by the department against the order of Collector (Appeals), Madras dated 1-7-1986.
2. Ld. DR stated that the respondents had imported a consignment of machine described in the invoice as 'Automobile Multi Station' (6 station 5 dies) Nut making machine Model NS 5-6 complete with standard accessories and claimed concessional assessment in terms of Notification No. 40/78, dated 1-3-1978 as Automatic Multi Station bolt or nut making machine. On examination it was found that although the item was invoiced as Automatic Multi Station nut making machine the machine was tooled in such a way that in imported condition it was capable of producing only Rollers for cycle chain and not Nut as mentioned in the invoice. Hence the goods were assessed at standard rate without extending the benefit of Notification No. 40/78.
3. Aggrieved of the above order of assessment the importer preferred an appeal before Collector (Appeals). The Collector (Appeals) allowed the appeal for the following reasons :- (a) In the catalogue the machine has been categorised under 'Nut former' and that the machine is capable of manufacturing nuts.
(b) Notification No. 40/78 does not stipulate that the machine should be exclusively designed for the manufacture of nuts.
(c) In the matter of classification and assessment it is the practice to go by the manufacturer's intention regarding the basic nature of machine.
(d) CEGAT decision B-372/83, dated 11-5-1983 regarding Automatic film/paper processor.
4. It was their contention that although the catalogue categorises the machine as nut former, the invoice describes the machine as follows :- 'One number automatic Multi Station Forming Machine for manufacture of bolts/nuts.
Model NS5-6 complete tooled up for serial no. 6 of drawing no. M. 577 with standard accessories'.
And from the drawing no. M. 577 it could be seen that it is tooled up to manufacture rollers for cycle chain. Hence, the form in which it is imported it is capable of producing only rollers for cycle chain and not nuts or bolts. The rollers cannot be considered as nuts/bolts as the tariff itself distinguishes them. In view of this position, the Notification No. 40/78 as at Sr. No. 12 of the table annexed to it covers only bolts/nuts making machines and not general purpose machines.
5. The Collector (A) has erroneously relied on the CEGAT's decision No.B-372/83, dated 12-5-1983 regarding automatic film/paper processor as the goods in the present case are not capable of making nuts in the form imported. In view of the language used in the entry, it is not correct that notification does not stipulate any end use condition.
6. Ld. Counsel for the respondent stated that the catalogue describes the Model NS 5-6 as nut former and the machine is capable of manufacturing nuts of specifications indicated therein. The machine can of course be tooled up to produce the rollers as well, it is in fact a versatile machine which could be adopted to produce certain other products akin to nuts but that cannot be a ground to deny the concessional assessment and the Ld. Collector has correctly relied on the Tribunal's order cited by him. In fact he would like to cite a few more cases such as :- (iii) CC v. Office Photostat Printers - 1991 (54) E.L.T. 142 (Tribunal) 7. We have considered the above submissions. We observe that in response to bench queries both the sides have submitted that there is no dispute regarding classification and the only question involved relates to the interpretation and application or Sr. No. 12 of the table annexed to the exemption Notification No. 40/78.
8. We further observe in this connection that the copy of the bill of entry and the invoice produced before us describes the imported item as automatic multi station forming machine for manufacture of bolts/nuts.
The invoice shows the model as NS 5-6 complete tooled up for Sr. No. 6 of the drawing No. M. 577 with standard accessories. The catalogue describes the NS 5-6 series as nut former and the forging progression for flange nut has been indicated and under the heading specifications in respect of Model NS 5-6 the nut sizes which could be manufactured have been shown. In the write up which has been submitted by the importers have submitted that the machine is basically a bolt/nut making machine with inbuilt capability to make components like chain rollers, bobbins etc., through the cold extrusion process. Therefore, they have explained that it is also called as Cold former. This is quite understandable.
9. Sr. No. 12 of the exemption notification specifically covers automatic multi station bolt or nut making machine.
10. That it is above type of machine is clear from the catalogue and merely because it is versatile and could be adapted for making other similar items will not take it out of the Sr. No. 12 of the exemption notification. The respondents have drawn attention towards a number of tribunal orders and judgments but we need not go into the details thereof in view of the clear position evident from the catalogue and the settled position in law that merely because the machine was capable of some additional functions as well it could not be deprived of the benefit of an exemption notification which was otherwise applicable.
11. Ld. D.R. has emphasised that it has been imported completely tooled up for making chain rollers but that does not make much of a difference as such tooling up is for the purpose of use and we are dealing with a versatile machine which can be tooled up in accordance with the requirements at any given time. What is important is that it is capable of manufacturing bolts and nuts and is basically a nut former as evident from the catalogue.
12. Hence, we see no reason to interfere with the order of Collector (Appeals); The appeal is therefore rejected, as already announced in the open court.