2017 (6) TMI 463 - AT - Central Excise

Classification of goods - Welded Wire Mesh - classified under Chapter Heading 73 of Central Excise Tariff Act 1985 or otherwise? - Welded Wiremesh has been cleared by the appellant by classifying under Chapter Heading 73 on payment of duty thereon but the Poultry Keeping Machinery parts namely Poultry Top, Poultry Bottom, Poultry Partition, Battery Cages etc. have been classified by the appellant under Chapter Heading 8436 and cleared without payment of duty on these items - Held that - As the items in dispute are Battery Cages, Poultry Top, Poultry Bottom, Poultry Partition and Poultry Keeping which have been cleared by the appellant to poultry farms by classifying under Chapter Heading 84369100, as the Poultry Keeping Machinery are classified under Chapter Heading 84369100 of CET Act, 1985 - the correct classification of the impugned goods is under Chapter Heading 84369100 of CETA - the demands are not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of Welded Wire Mesh and Poultry Keeping Machinery parts under the Central Excise Tariff Act 1985.

In this judgment by the Appellate Tribunal CESTAT CHANDIGARH, the appellant appealed against an order demanding duty, interest, and penalty for classifying Welded Wire Mesh under Chapter Heading 73 of the Central Excise Tariff Act 1985. The appellant, a manufacturer of Welded Wire Mesh and Poultry Keeping Machinery parts, had classified the Welded Wire Mesh under Chapter Heading 73 and the Poultry Keeping Machinery parts under Chapter Heading 8436. The revenue contended that the items should be classified under Chapter Heading 73, leading to the initiation of proceedings against the appellant. The appellant argued that the Poultry Keeping Machinery parts were properly classifiable under Chapter Heading 84369100, citing a previous tribunal decision. The revenue, however, referenced a Delhi High Court judgment supporting their classification under Chapter Heading 7314. The appellant countered by mentioning a Supreme Court decision remanding a similar case back for reevaluation. The Tribunal examined the issue in detail, considering the historical tariff classifications and legal precedents. They concluded that the Poultry Keeping Machinery parts should be classified under Chapter Heading 84369100, setting aside the impugned order and allowing the appeal.

The Tribunal highlighted that the items in dispute, namely Battery Cages, Poultry Top, Poultry Bottom, Poultry Partition, and Poultry Keeping Machinery, were correctly classified under Chapter Heading 84369100 of the Central Excise Tariff Act 1985. They referenced a previous tribunal decision and explained the rationale behind the classification, emphasizing the specific nature of the goods supplied to poultry farms. The Tribunal also discussed the evolution of tariff classifications and the relevance of recent legal developments in determining the appropriate classification for the goods in question. Ultimately, the Tribunal held that the demands made based on the initial classification were not sustainable, leading to the setting aside of the impugned order and granting consequential relief to the appellant.

Overall, the judgment provides a comprehensive analysis of the classification issue concerning Welded Wire Mesh and Poultry Keeping Machinery parts under the Central Excise Tariff Act 1985. It delves into the arguments presented by both parties, references relevant legal precedents, and ultimately arrives at a decision based on the specific classification criteria and historical context of the tariff classifications. The Tribunal's detailed examination of the issue and the subsequent ruling demonstrate a thorough consideration of the facts and legal interpretations involved in determining the correct classification of the disputed goods.