2010 (5) TMI 361 - AT - Central Excise

Classification of agricultural products Assessee claimed classification of machinery items manufactured by them, namely Fibre Extractor/Spares, Shifter/Spares, Sorting Machine/Spares under Chapter sub-heading 8433.00 - Change in classification - under sub-heading 8438.10/8438.90 On the ground, machinery not used for processing agricultural products - Chapter Heading 84.38 is only a residuary item Held that - Use of the impugned machineries for processing other goods like tulsi, coriander, chillis, which are also agricultural products, does not justify shifting the classification from sub-heading 8433.00 and that they do not deserve to be classified under sub-heading 8439.00.

Summary

Issues: Classification of machinery items under specific sub-headings

Analysis:
The appeal before the Appellate Tribunal involved the classification of machinery items manufactured by the Respondent under Chapter sub-heading 8433.00. The Department contended that the items should be classified under sub-heading 8438.10/8438.90, arguing that they are not used for processing agricultural products. However, the Respondent maintained that the classification under sub-heading 8433.00 was appropriate, as the machineries were indeed used for processing agricultural products. The Original Authority had upheld the classification under sub-heading 8433.00, which was also affirmed by the Commissioner (Appeals, leading to the Department's appeal before the Tribunal.

The Department, through its representative, reiterated the grounds of appeal, emphasizing that the machineries should be classified under sub-heading 8438.00. The Department pointed out the absence of a specific entry for Tea machineries under Tariff Heading 84.33 and argued that these machineries could be used for purposes other than processing tea. On the other hand, the Respondent's Consultant strongly supported the classification under sub-heading 8433.00.

Upon careful consideration of the submissions and perusal of records, the Tribunal examined the competing tariff entries for the impugned goods. The Tribunal noted that the impugned machineries more closely matched the description under sub-heading 8433.00, which pertained to machinery used for processing agricultural products. Additionally, Chapter Heading 84.38 was identified as a residuary item. Therefore, the Tribunal upheld the claim of the Respondent that the machineries were rightly classifiable under sub-heading 8433.00 for processing agricultural products, including tea and other agricultural produce like tulsi, coriander, and chillis. The Tribunal found no valid reasons to interfere with the classification upheld by the authorities below.

In conclusion, the Tribunal rejected the Department's appeal against the concurrent findings of the authorities below, affirming the classification of the machinery items under sub-heading 8433.00. The judgment was pronounced and dictated in the open court.