2008 (3) TMI 155 - AT - Customs

Grain dampening machines - it incorporates temperature and humidity measuring devices whose functions are ancillary to the principal function of dampening of food grains - imported machine per se not meant to be used as an automatic regulating/controlling instrument or apparatus, so not classifiable u/h 90.32, as contended by revenue - held that the goods imported by the assessee shall be classified under SH 8437.10, not under SH 8437.80 assessee s appeal allowed

Summary

Issues:
Classification dispute over imported "dampening system for mills" under Customs Tariff Act - SH 9032.89 vs. SH 8437.80.

Analysis:
1. The case involves a classification dispute regarding the imported "dampening system for mills." The appellants imported components classified under SH 9032.89, but claimed reassessment under SH 8437.80, which was rejected by the authorities. The party appealed to the Commissioner (Appeals) without success, leading to the current appeal.

2. The appellant argued that the imported system should be classified under SH 8437.80 based on the HSN Explanatory Notes under Heading 84.37. The authorities contended that the goods should be classified under Heading 90.32 due to regulating/controlling devices incorporated. The Tribunal examined the catalogue of components and noted the system's operation, emphasizing the dampening function and components like the measuring section and water dosage unit.

3. The Tribunal referred to the HSN Explanatory notes under Heading 84.37, which align with Tariff Heading 84.37 covering machines for milling industry operations. The appellant's alternative claim for classification under SH 8437.10 for "Grain dampening machines" was supported by the HSN Notes, which specify machinery for dampening food grains before milling. The Tribunal found the imported goods suitable for classification as "Grain dampening machine" under SH 8437.10, rejecting the Revenue's claim under Heading 90.32 for automatic regulating instruments.

4. Consequently, the Tribunal held that the goods imported by the assessee should be classified under SH 8437.10 of the Customs Tariff Act. The alternative plea for reclassification was accepted, and reassessment was directed accordingly. The appeal was allowed in favor of the appellant, providing consequential reliefs.

This detailed analysis of the judgment highlights the classification dispute, arguments presented by both parties, examination of components, reference to relevant tariff headings and explanatory notes, and the final decision of the Tribunal favoring the appellant's classification claim under SH 8437.10.