ORDER
Shiben K. Dhar, Member (T)
1. This appeal is directed against order dated 5-12-1991 of Collector (Appeals). The issue for determination is whether the impugned goods declared as moulds are classifiable under 8480.79 with benefit of Notification 314/85 as claimed by the appellants or they are classifiable as tools under 8207.90.
2. The appellants filed a Bill of Entry claiming impugned goods as moulds for Foot Bed Forming. They have also claimed exemption under Notification 314/85, dated 11-10-1985. The authorities below, however, have held that the impugned goods are not moulds but tools and the appellants have not produced proper catalogue in support of their claim. Collector (Appeals) held that he could not connect catalogue with the invoice of goods in question.
3. Arguing for the appellants, the Partner of the Company submits that the impugned goods are, in fact, moulds which are used for manufacturing the plastic footwear foot bed. A semi-molten plastic sheet is placed on these moulds and the goods take shape through gravity. The plain plate is placed above the mould and this plate acts as a mould die though the plate is straight since they do not need impression on both sides.
4. Arguing for the Revenue, the ld. DR reiterates departmental arguments and submits that the goods have to be mould in a modern form and only then the impugned goods to be considered as dies.
5. We have heard both sides. The representative of the Company drew our attention to Encyclopedia which explains the method of Cold Form. It indicates that Cold forming is the process of changing the shape of a thermo plastic sheet or preform in the solid face through plastic (permanent) deformation with the help of dies. Term Cold Form implies that the deformation occurs where the material is crude in nature. It is used, however, to include forming at higher temperature and it was argued before us that the final shape is given to plastic sheet in semi-mould condition through a process of cold forming. Displaying a sample in the Court, the Ld. representative explained how a molten sheet is placed on the die and alter formation what exactly is the end product. The end product, it was explained to us through the sample, is foot bed of a footwear and the impugned goods are moulds which give shape of a foot bed to the plastic sheet in semi-moulded condition.
5.2 In fact, Asstt. Collector himself in his order referred to technical write-up which is reproduced below : "The moulds for Insole Forming (Foot Bed) are used in the following process :-
The plant consists of a heating conveyor, hydraulic forming press, cooling machine and forming moulds. The cooling machine is attached to forming press to keep the press platen chilled. The moulds are fitted against the cold platen. The Insole Sheets are heated in the treating conveyor and placed in the heating conveyor and placed in the mould, the press is closed without pressure and is allowed to cool. After cooling, the press is opened and the Insole Sheet takes the shape of formed insole. The formed insoles are later cut and used in the leather footwear.”
6. We do not see how it can be inferred from this technical write-up that the impugned goods are tools and not dies. HSN Notes at Page 2321 indicate that this group includes moulds for making plastic articles whether or not electrically or otherwise heated, they may operate by gravity, or by injection or compression. The heating also includes preliminary diploading moulds. These imply a cold process to heating into douplex each of which contains appropriate quantity of material and ready for final melting into the desired article. From this it will be clear that a semi-molten sheet is pressed into shape through the die to produce foot bed and therefore such a die can only be considered as a die on a board. Bill of Entry indicated the goods to be moulds for leather footwear for insole forming. We also find an endorsement on the Bill of Entry indicating that dies and moulds would fall under Chapter 84.80 and assessable to a particular rate of duty. This endorsement, as claimed before us, as made by a Customs Officer while assessing the Bill of Entry. The goods in the Certificate of Origin issued by Taiwan Chamber of Commerce are declared as moulds for foot bed forming. Invoice issued by Lie Chin Enterprises ltd. describes the goods as moulds for foot bed forming. In the Memo of Appeal, appellants have further explained how the moulds work :
“The moulds are fitted on a plate mounted on a press. This plate is kept chilled. Thereafter, a hot sheet made of thermoplastic material which is in semi-molten (semi-plastic) form is kept. Since the plastic sheet is hot, if flows down in the mould cavity due to the gravitional force. As soon as the plastic material touches the inside cavity of the mould, it gets chilled and solidifies. The top plate of the machine presses the plastic sheet without applying any pressure only to give outline of the mould. Thereafter, the sheet with the impression received from the mould is taken out and the formed insoles are cut out. No punching is done by the press. The manufactured insole does not acquire the shape by any stamping or pressure from the machine.”
7. Considering the evidence placed before us and also after examining sample displayed in the Court, we are satisfied that the impugned goods can be considered only as moulds for classification under Chapter 8480 and would in consequence be entitled to benefit of Notification 314/85.
8. In view of this, we set aside the impugned order and allow the appeal.