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TMI Blog2018 (12) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... ble - penalty not imposable. Appeal allowed - decided in favor of appellant. - Appeal No. E/61820/2018 - A/63546/2018 - Dated:- 5-12-2018 - Mr. Ashok Jindal, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) For Appellant (s): Shri Vikrant Kackaria, Advocate For Respondent (s): Shri A. K. Saini, AR ORDER Per: Mr. Ashok Jindal The appellant is in appeal against the impugned order wherein the demand has been confirmed against the appellant by classifying the items in question under Chapter Heading No. 8428 of the Central Excise Tariff Act, 1985. 2. The facts of the case are that the appellants are manufacture of Rice Milling Machinery and Parts thereof like Rice Bucket Elevator (grain discharger), rice conveyor (grain feeder), paddy cleaner, paddy husker, paddy separator etc. The dispute in this case is about rice bucket elevator and rice conveyor whereas the appellants were classifying these goods under heading No. 8437 as machinery used in Milling Industry where the tariff rate is nil, according to the department these goods are classifiable under heading No. 8428, as other lifting, handling, loading or unloading machinery (fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veyors, for Goods or materials: u 12% 8428 31 00 Specifically designed for underground use u 12% 8428 32 00 Other, bucket type u 12% 8428 33 00 Other, belt type u 12% 8428 39 00 Other u 12% 8428 40 00 Escalators and moving walkways u 12% 8428 60 00 Teleferics, chair-lifts, ski-raglines, traction Mechanisms for funiculars u 12% 8428 90 Other machinery: 8428 90 10 For Coal handling u 12% 8437 Machines for cleaning, sorting and grading seed, grain Or dried leguminous vegetables machinery used in the Milli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. 5. For the purposes of these notes, the expression machine means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85. On going through the above provisions, we find that the conveyors and elevators manufactured by the appellants are designed, specifically, for rice mills which has not been disputed by the adjudicating authority in the impugned order, wherein it has been observed by the adjudicating authority that the goods in question are basically conveyors elevators, which are used for the transportation of the rice in a rice mill from one stage to the another. They can be horizontal as well as vertical as per the requirement of the Industry . These conveyors and elevators manufactured by the appellants specifically designed for use in rice mills are supplied alongwith the other rice mill machinery to the rice millers. These facts are not in dispute, therefore, the combination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e set of observations, the merit classification of the conveyors and elevators used in specifically designed for rice milling are classifiable under chapter heading No. 8437. We further take a note of the fact that in the case of Moped Assembly (supra) this Tribunal has observed that sheet metal components for use exclusively in rice milling industry classifiable under chapter heading No. 8437. Admittedly, in this case, these conveyors and elevators are specifically used for rice milling industry as the part of the composite machinery of rice milling, therefore, having merit classification under chapter heading No. 8437. 8. We have also gone through the decision of the Hon ble Apex Court in the case of G. S. Auto International Ltd. (supra) wherein the Hon ble Apex Court observed as if the items specifically made for specific machine would be classifiable as part of the said machine and not under the general heading. Admittedly, in the case in hand, the conveyors and elevators are for specific use of rice milling industry and nowhere else, in that circumstances, the same merits classification as per the rice milling machinery under tariff heading No. 8437. 9. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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