2017 (6) TMI 40 - AT - Central Excise

Classification of machines - Air Jet Filters - Super Jet Small Filters - rice milling machinery or otherwise? - whether classified under CTH 8421.10 or under CTH 8437? - Held that - These two items which are the subject matter of the present dispute are admittedly parts suitable for use solely or principally with machines falling under 8437. In terms of the Section Note above, the items in question are required to be classified with the machines of that kind i.e., 8437 - appeal rejected - decided against Revenue.

Summary

Issues: Classification of Air Jet Filters and Super Jet Small Filters under Central Excise Tariff Act

Classification of Air Jet Filters and Super Jet Small Filters:
The appeal before the Appellate Tribunal CESTAT Bangalore involved the classification of Air Jet Filters and Super Jet Small Filters under the Central Excise Tariff Act. The respondent, a manufacturer of parts for rice milling machinery, had filed a classification list, which was disputed by the department. The Order-in-Original was passed against the respondent, leading to the impugned order on reclassification. The key issue was the finalization of the classification of these items, with Revenue challenging the classification under 8437, while seeking classification under 8421.10.

Arguments and Analysis:
During the hearing, the Departmental Representative argued for classification under 8421.10, while the advocate for the respondent contended that the items were specifically designed for use with rice milling machinery and should be classified under 8437. The advocate relied on Section Note 2 to Section XVI of the Central Excise Tariff Act, stating that the goods should be classified under 8437 as they are suitable for use with machines falling under that category, i.e., rice milling machinery.

Decision and Reasoning:
After considering the submissions and examining the records, the Tribunal found that the disputed products were integral to the rice milling industry, used for cleaning and purifying grains for milling purposes. The Tribunal referred to Section Note 2, which dictates the classification of parts of machines, emphasizing that parts suitable for use solely or principally with a particular kind of machine should be classified with those machines. As the items in question were deemed suitable for use with machines under 8437, the Tribunal upheld the classification under 8437. Consequently, the appeal by Revenue was rejected, and the impugned order was upheld.

Conclusion:
The Tribunal's decision highlighted the importance of the specific use and design of the items in question, ultimately leading to the classification under 8437 in line with the provisions of the Central Excise Tariff Act. The judgment serves as a precedent for the classification of parts designed for specific machinery applications under the relevant tariff headings.