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2023 (8) TMI 701 - AT - Central ExciseClassification of goods - Galvanized Silo Solution systems (Silos) - classifiable under Chapter sub-heading 9406 00 93 or under Chapter 8437 10 00 of CETA, 1985 - whether these are silos for storing ensilage or not - demand alongwith interest and penalty - HELD THAT - The Commissioner in the impugned orders, analysing the functions and implications of the relevant chapters of the sub-heading, came to the conclusion that it is classifiable under Chapter 94 and not Chapter 84 of CETA, 1985. Also, discussing in the impugned orders, the learned Commissioner also made a reference to the order of Commissioner, Pune about the classification of identical items by B.G. Shirke Construction Technology Pvt. Ltd. The Pune Commissionerate also classified the items manufactured by M/s. B.G. Shirke Construction Technology Pvt. Ltd., under Chapter sub-heading 9406 00 99 and the appeal was stated to be pending before the Tribunal of Mumbai Bench in 2023 (1) TMI 296 - CESTAT MUMBAI . The Tribunal at Mumbai, after detailed discussion of the Silos functions, HSN etc. in its order dt. 25.11.2022 concluded that the classification of the said Silos would be under Chapter 8437 10 00 but not under Chapter sub-heading 9406 00 99 of CETA, 1985. There are no merit in the impugned orders. Consequently, the same are set aside and the appeals are allowed.
Issues: Classification of Silos under Chapter 9406 00 93 or Chapter 8437 10 00 of CETA, 1985.
The appellant, engaged in manufacturing Transformer Oil Filter machines, Seed Processing machinery, and Silos, faced a dispute with the Revenue over the classification of Silos. The Revenue contended that the Silos should be classified under Chapter sub-heading 9406 00 93 for storing ensilage, while the appellant argued for classification under Chapter 8437 10 00 of CETA, 1985. Show-cause notices were issued for duty demands covering different periods, which were adjudicated and confirmed with interest and penalties, leading to the filing of appeals (Appeal No.E/21027/2019, Appeal No.E/21028/2019, Appeal No.E/20075/2023). In previous rounds of litigation, the Tribunal directed examination of the classification claim under Chapter 84 of CETA, 1985, considering various evidence like samples, purchase orders, and brochures. Despite this, the Commissioner continued to classify the Silos under Chapter sub-heading 9406 00 93. The appellant argued that a similar case involving B.G. Shirke Construction Technology Pvt. Ltd. was classified under Chapter 8437, and the Tribunal at Mumbai had upheld this classification based on HSN notes and opinions of the Department. The appellant emphasized the similarity between their products and those of B.G. Shirke, supported by a letter dated 16/03/2023. The Revenue, represented by the learned AR, reiterated the Commissioner's findings regarding the classification of the Silos. After hearing both parties and examining the records, the Tribunal focused on the key issue of classifying "Galvanized Silo Solution systems." The Revenue proposed classification under 9406 00 93, while the appellant advocated for classification under Chapter heading 8437 10 00. The Commissioner, in the impugned orders, classified the Silos under Chapter 94, referencing the classification by B.G. Shirke Construction Technology Pvt. Ltd. The Tribunal at Mumbai had previously decided in favor of classification under Chapter 8437 10 00, not 9406 00 99, based on detailed discussions and evidence, including the Chief Commissioner's agreement with the appellant's classification and the Shipping Bills filed by the appellant. In light of the Mumbai Tribunal's decision, which was accepted by the Department, the impugned orders were deemed without merit, set aside, and the appeals were allowed with any consequential relief as per law.
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