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2013 (10) TMI 678 - AT - CustomsClassification - import of Screw/Drag Conveyors and Bucket Elevators - whether parts of Feed Mill Machinery claiming classification under CTH 84361000 and exempted from duty - Waiver of pre deposit - Held that - Prima facie, Imported goods are not machinery. In view of that the applicant has failed to make out a strong prima facie case for waiver of pre-deposit of entire duty. After considering the submission of both sides, we direct the applicant to deposit a sum of Rs.25,00,000 within a period of eight weeks and report compliance on 6.9.2013. Upon such deposit, pre-deposit of the balance amount of duty shall stand waived and recovery thereof stayed during the pendency of the appeal - stay granted partly.
Issues: Classification of imported goods under Customs Tariff Heading, Waiver of pre-deposit of duty
Classification of Imported Goods under Customs Tariff Heading: The case involved the classification of imported goods declared as 'Screw/Drag Conveyors and Bucket Elevators' under CTH 84361000 by the applicant, seeking exemption and CVD benefit. The adjudicating authority classified the goods under CTH 84.28, considering them as conveyors and elevators for transporting grains and materials. The Tribunal noted the distinction between CTH 84361000 for machinery for preparing animal feeding stuffs and CTH 84283900 for conveyors for goods or materials. The applicant argued that the imported goods were bucket elevators, not machinery, and claimed entitlement to CENVAT credit. The Tribunal found that the applicant failed to establish a strong prima facie case for the waiver of the entire duty amount. Consequently, the Tribunal directed the applicant to deposit Rs.25,00,000 within eight weeks, with the balance duty amount waived upon compliance, and recovery stayed during the appeal. Waiver of Pre-Deposit of Duty: The applicant sought a waiver of pre-deposit of duty amounting to Rs.68,26,007. After hearing both parties and examining the records, the Tribunal considered the nature of the imported goods and the arguments presented. The Tribunal observed that the imported goods were not clearly classified as machinery under the relevant Customs Tariff Heading. Despite the applicant's claim of entitlement to CENVAT credit, the Tribunal found the case lacking a strong prima facie basis for a complete waiver of the duty amount. Consequently, the Tribunal ordered the applicant to deposit Rs.25,00,000 within a specified period, with the remaining duty amount waived upon compliance and recovery stayed during the appeal process. This detailed summary provides a comprehensive analysis of the legal judgment, covering the issues of the classification of imported goods under the Customs Tariff Heading and the waiver of pre-deposit of duty. The judgment highlights the Tribunal's evaluation of the classification dispute, the applicant's arguments, and the decision regarding the pre-deposit amount, ensuring a thorough understanding of the case.
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