2017 (5) TMI 1434 - AT - Customs

Classification of imported machinery - machinery for preparing animal feedings stuff - classified under CTH 8436 10 00 or under CTH 8479 89 99? - Held that - what has been imported is a complete cattle feed manufacturing plant comprising of several assorted equipments and their parts. It is also to be noted that all these equipments working together are designed to manufacture cattle feed on an industrial scale - When we refer to the heading of 8436, we are of the view that the imported machines do not fall within any of the categories of machines outlined therein. For example, it cannot be considered as an agricultural machine or horticultural machine. It is also not a machine which finds use in forestry or poultry or bee-keeping. It is also not connected with germination plant or poultry incubators. The impugned order classified the goods under CTH 8479. This heading is applicable for machines and mechanical appliances having individual functions and not specified elsewhere in the chapter. Since the imported machines are capable of performing the independent function of manufacturing of cattle feed and this function is distinct and independent from any other machine or appliance listed out individually in Chapter 84, we find no infirmity in the classification ordered by the learned Commissioner in the impugned order. Appeal dismissed - decided against appellant.

Summary

Issues: Classification of imported machinery under Customs Tariff Act.

Analysis:
1. The appellant imported machinery for preparing animal feeding stuff and declared classification under CTH 8436 10 00, paying duty accordingly. However, post-audit verification led the Department to believe the goods should be classified under CTH 8479 89 99, demanding a differential duty of &8377; 45,06,821/-.
2. The appellant argued that the imported machines fall under a specific entry in the Customs Tariff Act, i.e., 8436, and should be classified accordingly based on the function they serve.
3. The appellant contended that reliance on external aids of interpretation by the Department was in conflict with legislation and opposed to basic principles of classification.
4. The appellant cited case laws supporting the argument that classification should be based on the words of the statute and entries in the schedule, not solely on HSN explanatory notes.
5. The Department argued that the machinery imported was for industrial production, specifically for a 500 TPD cattle feed plant, and should be classified under 8479.
6. The Tribunal noted that the imported machinery constituted a complete cattle feed manufacturing plant designed for industrial use, not falling within the categories outlined in 8436.
7. The Tribunal found that the machinery imported did not fit under the heading of 8436, as it was not related to agriculture, horticulture, forestry, poultry-keeping, or bee-keeping, as specified in the Customs Tariff Act.
8. The Tribunal determined that the imported machinery was appropriately classified under CTH 8479, as it had individual functions not specified elsewhere in the chapter and was distinct from other machines listed in Chapter 84.
9. The Tribunal upheld the classification ordered by the Commissioner, rejecting the appellant's argument against relying solely on HSN explanatory notes for classification.
10. The Tribunal concluded that the imported goods were not classifiable under 8436 based on the headings and sub-headings of the schedule, supporting the Commissioner's classification under 8479.
11. The impugned order was upheld, and the appeal was dismissed, with no infirmity found in the classification decision.

End of Analysis.