9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 47 - AT - CustomsClassification of imported goods - Probat Roasting Unit - appellant classified the goods under 85167990 claiming benefit of exemption under S.No. 252 (A), S.No. 2 of list 32 (A) of Customs N/N. 21/2002 - Department has denied the classification and exemption thereby and classified the coffee roasting machine under CTH 84193100. Whether the goods will be classified under CTH 85167990 or under CTH 84193100? Held that - What is important is to see the source of energy for the main function of the machines. The impugned machine is gas-fired for the main function of roasting and therefore, as per the construction of the tariff Heading 8419, coffee beans being agricultural products used for heating or roasting of coffee beans finds merits classification under CTH 84193100. Therefore, there is no reason to interfere with the order of the learned Commissioner (A). Classification given in the Notification - Held that - Notification has given the description under List 32A (ii) not only mentions coffee roasting machine intended for industrial use at S.No. (ii) but also say machines falling under CTH 85167990 - It is not so that the lower authority cannot interpret the Notification in a piecemeal manner and to say that the exemption is available to coffee roasting machine intended for industrial use even if they do not fall under the tariff Heading mentioned therein. The classification of the coffee roasting machine under CTH 84193100 of Customs Tariff Act is upheld - appeal dismissed - decided against appellant.
Issues:
Classification of imported coffee roasting machine under Customs Tariff Act. Analysis: 1. The appellants imported a Probat Roasting Unit and claimed exemption under Customs Notification No. 21/2002. The Department denied the classification and exemption, classifying the machine under CTH 84198190. The Commissioner (A) further classified it under CTH 84193100. The appellants contended that the classification was incorrect and sought classification under CTH 85167990 for machinery in the plantation sector. 2. The appellants argued that the machine should be classified under CTH 85167990 as it uses electricity for running, even though LPG is used for heating. They cited cases to support their claim. The Departmental Representative countered, stating that the machine primarily uses gas for roasting, making it unsuitable for classification under Heading 8516 which covers electro-thermic appliances for domestic use. 3. The Departmental Representative relied on Heading 8419, which covers machinery for heating, cooking, roasting, etc., involving a change of temperature. The Commissioner (A) correctly classified the machine under CTH 84193100, considering it suitable for roasting coffee beans, an agricultural product. The Heading 8516 covers only electro-thermic appliances for domestic use, not industrial machines like the coffee roasting unit. 4. The Department emphasized strict compliance with the Notification's conditions, as per legal precedents. The Tribunal considered both arguments and examined the case records. 5. The main issue was the correct classification of the imported coffee roasting machine. The Tribunal noted that while the appellants claimed it was for the plantation sector, it did not align with the Heading specified in the Notification. The Departmental Representative clarified that the machine's primary function of roasting by gas excluded it from Heading 8516. 6. The Tribunal agreed with the Commissioner (A) that the machine fell under Heading 8419 due to its gas-fired roasting process. The source of energy for the primary function determined the classification, leading to the machine being classified under CTH 84193100 for roasting agricultural products like coffee beans. 7. The Tribunal upheld the Commissioner (A)'s classification, rejecting the appellant's arguments about the machine's use of electricity for rotation. The Notification's wording and legislative intent were considered, emphasizing adherence to the Customs Tariff Act's descriptions and nature for classification purposes. 8. Consequently, the Tribunal dismissed the appeals and affirmed the classification of the coffee roasting machine under CTH 84193100 of the Customs Tariff Act.
|
