2007 (12) TMI 339 - AT - Central Excise

Classification - Poultry keeping machinery/equipments - Parts thereof - whether to be classified under CTH 3926.90 or under CTH 8436.00? - Held that - the parts of poultry keeping equipment/machinery are classifiable under sub-heading 8436.99 - appeal allowed.

Summary

Issues: Classification of goods under Chapter Sub-Heading No. 3926.90 or 8436.00, Acceptance of cited judgment, Legal validity of the impugned order

In this case, the appellants, who were manufacturers of poultry keeping machinery and parts thereof, contested the classification of their goods as cage floor (soft) made of plastic falling under Chapter Sub-Heading No. 3926.90 by the Department. The appellants argued that the goods should be classified under Chapter Sub-Heading No. 8436.00 at NIL rate of duty as parts of poultry keeping machinery. The Commissioner (Appeals) allowed the Review order filed by the Revenue, confirming the demand and imposing penalties. The appellants appealed this decision.

The learned Counsel for the appellants referred to a previous case where the Tribunal had decided in favor of the assessee, classifying similar items as parts of poultry keeping machinery under Chapter Heading 8436.00. Despite the difference in material (plastic in the present case), the appellants contended that the items were exclusively made of plastic and invoices supported their claim as parts of poultry keeping machinery.

The Tribunal noted that in the assessee's own case, the Revenue had previously contested the classification issue, which was decided in favor of the assessee under Chapter Sub-Heading No. 8436.00. The Revenue, in response to a citation relied on by the appellants, confirmed their acceptance of the cited judgment. Therefore, the Tribunal held that the parts of poultry keeping machinery should be classified under sub-heading 8436.99, following the cited judgment. As a result, the impugned order was deemed not legal and proper and was set aside. The appeals were allowed with consequential relief if any.

In conclusion, the Tribunal's decision focused on the correct classification of the goods under Chapter Sub-Heading No. 8436.00 as parts of poultry keeping machinery based on the cited judgment. The acceptance of the cited judgment by the Revenue played a crucial role in overturning the impugned order and granting relief to the appellants.