2023 (10) TMI 77 - AT - Customs

Classification of imported goods - poultry Feed Milling machinery - to be classified under CTH 9406 00 93 or under CTH 8436 10 00? - HELD THAT - Admittedly, the Assessee has placed the purchase order dated 19.01.2011 for Poultry Feed Milling Machinery . For these items, the exporter has raised the proforma invoice on 10.08.2011. The packing list has been prepared by the overseas exporter for various items falling under these categories of the goods. All these documents were before the Customs Officials when the Bill of Entry was presented based on the Proforma Invoice issued by the exporter. After examining the goods, it is seen that the officials have directly held that the goods are found to be silos without giving any detailed findings as to how they have arrived at this conclusion. The Adjudicating Authority in the OIO has not given any detailed findings as to how the conclusion can be drawn that the goods are silos when the description given in the Bill of Entry, Proforma Invoice, Bill of Lading, Packing list, etc., specifically speak of feed milling machinery. We observe that there is direct entry at CTH 8436 which speaks of machineries used in poultry keeping - there is no categorical assertion that the goods in question fall under silos . Further there is nothing to show by way of evidence that the imported goods have been used for storing ensilage . Therefore, the classification arrived at by the Adjudicating Authority cannot be agreed upon. Classification arrived at by the Commissioner (Appeals) - HELD THAT - He has come to an independent and different classification which amounts to going beyond the brief available to him, without putting the importer to notice about this re-classification proposal. This also amounts to non-following of principles of natural justice. It is also clearly seen that when the specific classification is available at CTH 8436 10 00, he could not have classified them under CTH 8479 90 90. Therefore, the impugned OIA is dismissed on this count. Appeal of assessee allowed.

Summary

Issues involved: Classification of imported goods under Customs Tariff Headings (CTH) 8436 10 00, 9406 00 93, and 8479 90 90.

Summary:
The Assessee imported machinery for poultry feed milling and classified it under CTH 8436 10 00, but the authorities reclassified it under CTH 9406 00 93 and later under CTH 8479 90 90. The Assessee and the Revenue both appealed against the reclassification.

Classification under CTH 8436 10 00:
The Assessee argued that the goods fall under CTH 8436 as they are machinery for preparing animal feed, not under CTH 9406 or CTH 8479. They provided evidence supporting their claim, including documents like proforma invoice and packing list. The Tribunal noted that the goods were described as feed milling machinery in the documents, and there was no evidence to suggest otherwise. The specific entry under CTH 8436 10 00 for machinery preparing animal feed should be considered first before the general entry under CTH 8479 90 90.

Classification under CTH 9406 00 93:
The Adjudicating Authority classified the goods under CTH 9406 00 93, relating to silos for storing ensilage. However, the Assessee argued that the imported goods were parts of milling machines and not silos. They provided expert opinion that ensilage cannot be done in metal silos. The Tribunal found no evidence that the goods were silos or used for storing ensilage, thus disagreeing with the classification under CTH 9406.

Commissioner (Appeals) reclassification under CTH 8479 90 90:
The Commissioner (Appeals) reclassified the goods under CTH 8479 90 90, which the Tribunal deemed as going beyond the issue without notifying the Assessee, violating principles of natural justice. The specific classification under CTH 8436 10 00 should have been followed instead.

Decision:
The Tribunal allowed the Assessee's appeal, dismissing the Revenue's appeal. The reclassification was deemed incorrect, and the goods were held to be classifiable under CTH 8436 10 00. The Appeals were disposed of accordingly.