2001 (9) TMI 411 - AT - Central Excise

Summary

Issues: Classification of Powder Conveying system under Central Excise Tariff Act

Analysis:
1. The primary issue in this appeal is the classification of the Powder Conveying system manufactured by M/s. Indo Berg Ltd. The question is whether the system should be classified under sub-heading 8434.90 as parts of dairy machinery or under Heading No. 84.28 as "Other lifting, handling, loading or unloading machinery," as confirmed by the Commissioner (Appeals).

2. The Appellant's representative argued that the impugned system is a crucial part of dairy machinery, essential for milk production. Referring to the Explanatory Notes of H.S.N., it was contended that Heading 84.34 covers machinery used in milk treatment and dairy product conversion. The Advocate relied on precedents like C.C.E., Bombay v. B.K. Paper Mills and Laxmi Boilers v. CCE & C, Mumbai-II to support the classification under sub-heading 8434.90.

3. On the contrary, the Respondent's representative argued that Heading 84.28 of the Central Excise Tariff Act covers handling systems, including conveyors. It was emphasized that the Powder Conveying system itself is a final product falling under Heading 84.28 for material conveyance. Reference was made to Note 2(a) to Section XVI of the Tariff and decisions like Bhilai Engineering Corpn. Ltd. v. C.C.E., Raipur to support this classification.

4. The Tribunal considered both arguments and noted that the Powder Conveying system conveys milk powder, as acknowledged by the Appellants. The Explanatory Notes of H.S.N. under Heading 84.28 clarify that machinery for material handling, even if specialized, falls under this category. The Tribunal also highlighted that parts of a machine are classified in the same heading, as per the General Explanatory Notes to Section XVI. Therefore, since the impugned product is specifically included under Heading 84.28, it was rightly classified there, in line with previous decisions like Bhilai Engineering Corpn. Ltd.

5. The Tribunal concluded that the Powder Conveying system should be classified under Heading 84.28, even if intended for incorporation into dairy machines. The decision was supported by the provisions of the Central Excise Tariff Act and previous judgments like Laxmi Boilers. The Tribunal found no error in the classification made by the Commissioner (Appeals) and dismissed the appeal accordingly.