H.R. Syiem, Member (T)

1. The material in dispute in all these appeals is an article that the department calls a steel plate but which the importers call a mould. The department holds that these steel sheets would be assessable under Chapter 73 as plates of iron or steel, hot-rolled, or cold-rolled, whereas the assessees argued that Chapter 84 is the correct heading for it, because this is a mould and is a part of machinery. The goods that were imported were described variously by the different importers as stainless steel sheets or as flat moulds. At other times, they were described in invoices as stainless steel press plates; they have also been described simply as press plates. However, there is no need to record all the different names which these articles have been given, because one fact is uncontradicted and this is that the goods are flat rectangular pieces of stainless steel whose technical description can be given thus: 2.5 mm thickness, 3110 x 1270 mm length and width, made of martensitic steel, hardness 40-45 Rockwell C and used in forming or shaping or pressing plastic laminates and laminated sheets. The ground of dissension between the Custom House and the importers is the fact that the department says that the goods are nothing but stainless steel sheets/plates, while the importers say that they are not stainless sheets and plates but are forming/shaping moulds which give shape and form to the plastic laminates and, therefore, should be classed as moulds. The different parties i.e. the importers and the Custom House, were heard one after another and they presented long and elaborate arguments.

2. The counsel for M/s. Bakelite Hylam, Hyderabad [appeal Nos. CD(SB) (T)A No. 140/79-B2 and CD(SB)(T)A. No. 151/79-B2] began the arguments and stated that reference to Sections XV and XVI of the Customs Tariff would disprove the contention of the department. He drew attention to Chapter Note 1(n) of Chapter 73 which reads:

sheets and plates (Heading No. 73.13): rolled products [other than coils for re-rolling as defined in paragraph (k) above] of any thickness and, if in rectangles, of a width exceeding 500 millimetres:

Heading No. 73.13 is to be taken to apply, inter alia, to sheets or plates which have been cut to non-rectangular shape, perforated, corrugated, channelled, ribbed, polished or coated provided that they do not thereby assume the character of articles or of products falling within other headings over.

Heading 73.13 covers sheets and plates, or iron or steel, hot-rolled or cold-rolled; it is easy to see from the application to which these articles are put that they are not sheets of plates of steel. He then referred to the 1977 Customs Tariff Chapter heading 73.15(2). Chapter 73 cannot under any circumstances embrace or take into its cover these goods. This Chapter will accept only iron and steel articles which are in a crude stage of production and have not taken the form and quality of finished machinery parts like these ones. The articles they have imported are highly specialised finished articles made of steel which are ready for fitment in machinery to work in conjunction with and as integral parts of, a highly sophisticated machinery.

3. He next turned his attention to Section XVI of the Customs Tariff. This section covers "Machinery and mechanical appliances; electrical equipments; parts thereof." Note 5 under this section provides that "for the purpose of these notes, machine" means any machine, apparatus or appliance of a kind falling within Section XVI. This section deals with machinery, and their goods being machinery parts would, by reason of Section Note 2 under Section XVI fall under Chapter 84 in this section. Furthermore, this chapter has two sub-headings which are ideally suited to hold these goods and are clearly designed to take into their coverage goods like these. Heading 84.59 covers "Machines and mechanical appliances, having individual functions, not falling within any other heading of