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TMI Blog2019 (11) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... he benefit of Notification No. 12/2012-Cus. Dated 17 March 2012 Sl. No. 399-A whereunder the basic customs duty leviable on the import consignment was @ 2.5% and counter veiling duty was nil rated. The Department has been of the view that the subject consignment of the imported goods is rightly classifiable under Customs Tariff Heading 90319000 and they are not entitled for the benefit of the Notification No. 12/2012-Cus. Dated 17 March 2012. After adjudication, the matter went up to the level of Commissioner (Appeals) who vide his impugned order-in-appeal No. CC (A) CUS/D-I/NCH/777/2018-19 dated 29 March 2019 has held that the impugned import goods as mentioned at Sl. No. (i) and (ii) are rightly classifiable under Chapter Customs Tariff Heading 90314900 and the items mentioned at Sl. No. (iii) in the preceding para are rightly classifiable under Heading 85299090 and the appellant is not entitled for benefit of Notification No. 12/2012-Cus. Under entry at Sl. No. 399A of the notification. 3. The appellant are before us against the above-mentioned impugned order-in-appeal dated 29 March 2019. 4. We have also heard the learned Departmental Representative of the Revenue in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achine. The cabling is impressed upon to not to be a manufacturing activity. Keeping in view the emphasis of appellant, condition No. 5 of Customs (Imports of goods at concessional rate of duty for manufacture of excisable goods) Rules is perused. It reads as follows: 5. Procedure to be followed: (1) The importer who intends to avail the benefit of an exemption notification shall provide information- (a) In duplicate, to the Deputy Commissioner of Customs or as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, the estimated quantity and value of the goods to be imported and the part of import in respect of a particular consignment for a period not exceeding one year. 7. Thus, for imported goods to avail benefit of the notification Sr. No. 399(B) should be such as have to undergo the process of manufacture for being called as agricultural machine at Sr. No. 399(A) of the Notification. Hence, it is foremost important to check as to whether cabling of various parts of agricultural machine so as to let them function as a complete mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 999 (105) ELT 263 has held that putting together different duty paid items in a kit or box does not amount to manufacture. This Tribunal in the case of Space Age Engineering Projects Pvt. Ltd. Vs. Commissioner 1999 (78) ELT 544 has held that simple collection of parts even partly self-made and partly brought out at the site by itself does not amount to manufacture of new goods in SKD/CKD/disassembled condition. Above all, it has been classified by the Hon'ble Apex Court in the case Collector Vs. Steel Strips Ltd. 1995 (77) ELT 248 (S.C.) that onus to establish manufacture lies on the Department. 10. Applying this entire case law to the facts of the present case, apparently and admittedly, the appellant is importing different parts in a kit form/disassembled condition for which mere cable connection is required for said kit to constitute one single machine called as laser levelling machines. Those parts need simple cabling at the site, to be levelled, to function as a complete machine of laser land leveller. The said activity of cabling is already held to not to be called as manufacture. Those observations take the impugned imported products out of the ambit of serial No. 399(B) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants since do not require any activity which can be called as manufacture, but when cabled at the site they can be used as a laser land levelling, an agricultural machine, the product qualifies to fall under serial No. 399(A) of the Notification No. 12/2012 dated 17.03.2012 to which a concessional/exceptional duty @ 2.5% is applicable. Hon'ble Supreme Court also has supported these observations in the case of Commissioner of Central Excise Vs. BHEL 2018 (010) GSTL 3 (S.C.) wherein it was held that although the product imported being the components of boilers are cleared as part but since those are capable to put into operation as a complete boiler without any activity of manufacture, the Rules of Interpretation and HSN notes about incomplete and unassembled machines have been rightly relied upon for classifying the goods under the respective heading for the complete boilers. 14. In this case, the machine is laser land leveller. Keeping in view all the said observations, opinions and findings we hold that Department has wrongly held the articles imported to be the articles falling under either Chapter 9015 instead of Chapter 8432 and under Serial No. 399(B) of Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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