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TMI Blog2015 (2) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... officers had considered this aspect and had omitted several items while issuing show cause notice which were actually solely or principally used with the machines manufactured by them. Under these circumstances, the appellants clearly have no case on merits at all. Further the observations of the Commissioner reproduced above and not contested by the learned counsel or by the appellants at any stage and coupled with the description of the inputs and Bills of Entry would clearly show that there was a misdeclaration of the goods in the classification. If the appellants were not to mention the machine number/machine description with the items imported which amounted to stating that they were proposed to be used or useful solely or principally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants are the following : The appellants are manufacturers of food processing machines. They have been importing various goods, viz. adhesive tape, battery pack, bearing, coil vibrator and encapsulated coils for FT01, panel control 90000, earthing, fan, Dust Filters/Screen Dust Filters, Fuse, Magnetic thermal strip, Nilos type Ring, PSU of various models, Cable Assembly for Dual PSU, Seal-O-Ring, Steel Flat, Limit switch and Reed Switch, Transducer Assembly, Strip, Tension Pulley, Seal EPDM and Strip Seal, Wire Cloth/MTSC Wire Cloth, PSU Assemblies, etc., from their suppliers. The Appellant importer has been describing the goods, in the Bills of Entry filed for clearance of the said imported goods, as Parts of Rice Mill Machine , P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Dust Filters, Fuse, Magnetic Thermal Strip, Nilos Type Rinq, PSU of various models, Cable Assembly for Dual PSU, Seal-O-Ring, Limit Switch and Reed Switch, Transducer Assembly, Strip, Steel Flat, Tension Pulley, Seal EPDM and Strip Seal, Wire Cloth/MTSC Wire Cloth, PSU Assemblies, are being assembled by the importer into such machineries. Further, the importers have classified such goods under CTH 8437 90 10/8437 90 20/8437 90 90, as parts of machines for cleaning, sorting, etc. However, from the technical details provided and the statements of the representatives of BIPL, it appeared that the above goods have been classified wrongly and have to be classified according to the Section Notes and Chapter Notes of the Customs Tariff Act, 1975 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein the Commissioner has considered the submissions and has reached the conclusion which according to the learned AR is the correct conclusion. Paragraphs 26 27 of the impugned order are relevant and are reproduced below :- 26. The noticees have, in all fairness, not contested the classification of goods proposed in the show cause notice. It has been contended that the goods were inadvertently classified under the heading relevant for parts of rice milling machine ; that they had described the goods correctly; and that there was no mis-declaration. As such, the show cause notice should not have been issued in terms of Section 28(1)(b) and 28(2) of the Customs Act, 1962 and no penalty is leviable. In view of this, the issue left to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edl Z Ser. M/C for sorting of Seal Grain as Dried Leg. Veg. (iv) In Bill of Entry No. 971648, dated 17-2-2009, the wire mesh was declared as wire mesh P/N UXF-10500-033 718X397 MM (Part of Rice Mill M/C) . (v) In Bill of Entry No. 820968, dated 1-8-2008, the fan was declared as fan 24V RG 160-28/14 NR P/N : 62568 (Part of Sortex M/C) . As brought out in Annexure I of the show cause notice, in all Bills of Entry the items/parts imported have been declared to be parts of specific machines and not parts of general use, as illustrated above. Further, the material of which such parts/items are made of was also not declared. It is important to note here that in terms of relevant Section Notes these parts/items have to be cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e items imported which amounted to stating that they were proposed to be used or useful solely or principally with the machine manufactured by them, if the items were of general use, this claim clearly is a misdeclaration. 8. Under these circumstances, as held by the learned Commissioner, the provisions of Section 28 which provides for non-issue of show cause notice wherein the importer pays the entire amount of duty with interest would not be applicable to the appellants at all. Therefore, this claim of the appellant s counsel that no proceedings should have been initiated cannot be accepted and is denied. Similarly the duty demand and the interest thereon also has to be upheld as not contested. 9. Since the misdeclaration has been e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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