2021 (9) TMI 1257 - AT - Customs

Classification of imported goods - screw / drag conveyors and bucket elevators - to be classifiable under CTH 84379090 or under CTH 8428? - HELD THAT - The very same issue was analyzed by the Tribunal in the case of M/S ANNAPURNA AGRONICS MACHINERY PVT LTD VERSUS CCE ST- SONEPAT (DELHI-III) 2018 (12) TMI 854 - CESTAT CHANDIGARH where it was held that the appellants have produced various technical opinions as well as the data from Customs and Central Excise Department wherein the importer as well as exporter of elevators and conveyors used specifically designed for rice milling have been classified under heading No. 8437 of the CETA. The impugned goods imported for specific use in the milling factory merits classification under CTH 8437 - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported goods under CTH 8428 or CTH 8437.

Detailed Analysis:

1. Classification Issue:
The issue revolves around the correct classification of "screw / drag conveyors and bucket elevators" imported by the appellant. The appellant claimed that these goods, integral to their milling machine for manufacturing shrimp feed, should be classified under CTH 8437 for machinery used in the milling industry. The department argued that these goods should be classified under CTH 8428 for machines used for lifting, handling, loading, or unloading. The appellant contended that the imported goods were explicitly declared as parts of milling equipment and were essential for their manufacturing activity. The department's position was based on HSN Explanatory Notes, which exclude machines used in the milling industry from CTH 8437.

2. Legal Precedents and Arguments:
The appellant's counsel referenced several legal precedents, including decisions by the Tribunal and the Supreme Court, to support their classification under CTH 8437. They highlighted the importance of the goods in the milling factory's operations and how they were specifically designed for rice milling industry use. The Tribunal's previous decisions emphasized that goods designed for specific machines should be classified accordingly. The appellant's technical opinions and data from Customs and Central Excise Department further supported their classification under CTH 8437.

3. Tribunal's Decision:
After a thorough analysis of the arguments and legal precedents, the Tribunal concluded that the imported goods, specifically used in the milling factory, should be classified under CTH 8437. The impugned order reclassifying the goods under CTH 8428 was set aside, and the appeal was allowed with consequential reliefs, if any. The Tribunal's decision was pronounced in open court on 24.9.2021.

In summary, the judgment addressed the classification issue of imported conveyors and elevators, emphasizing the specific use of these goods in the milling industry. The legal analysis considered relevant legal precedents, arguments presented by both parties, and the technical aspects of the goods to determine the correct classification under the Central Excise Tariff Act.