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TMI Blog2019 (11) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be for irrigational purposes in agriculture/horticulture, the classification of the same is correctly done under CETH 8424 9000 and not under CETH 39.17 as contended by the Department - Appeal allowed - decided in favor of appellant. - Central Excise Appeal No. 2985/2011 - A/31021/2019 - Dated:- 5-11-2019 - HON BLE MS. SULEKHA BEEVI C.S, MEMBER (JUDICIAL) AND HON BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri B. Venugopal, Advocate for the appellant Shri L.V. Rao, Additional Commissioner/AR for the respondent ORDER PER: MR. P. ANJANI KUMAR 1. This appeal is directed against Order-in-Original No. 17/2011-CECommr. Dt. 02.09.2011 passed by Commissioner of Customs, Central Excise Service Tax, Hyderabad-I Commissionerate. 2. Heard both sides and perused the records. 3. The brief facts of the case are that the appellants, Nagarjuna Fertilisers and Chemicals Limited had set up an unit i.e. Unit No.1 for manufacture of agriculture and horticulture equipment; they have also purchased plant and machinery of Bhagyanagar Wood Plast Limited who were engage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e preferred to more general description since the plastic pipes are very specifically described in Heading No. 39.17, they may be classified accordingly under Heading No. 39.17. He also relied upon the following case laws: i) Commissioner of Central Excise, Coimbatore vs. Salzer Controls Limited [2002(139)ELT 446 (Tri.-Chennai)]. ii) Paper Products Limited vs. Commissioner of Central Excise [1999(112)ELT 765 (S.C.)]. iii) Collector of Central Excise, Patna vs. Usha Martin Industries [1997(94)E.L.T. 460 (S.C.)]. iv) Ranadey Micronutrients vs. Collector of Central Excise [1996(87)E.L.T. 19 (S.C.)] 7. He further submits that Shri Shyam Sunder Dash, DGM of the appellants has accepted that the pipes manufactured by them are in no way different from the PVC pipes manufactured and sold by other manufacturers such as Finolex, Sudhakar PVC pipes etc. Ld. AR vide his written submissions dated 25.10.19 further submits that in terms of Section Note 1(g) of Section XVI of Central Excise Tariff Act, parts of general use are excluded from Section XVI which has Chapter 84 in it. Therefore, the pipes cannot be classifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n projects. The Tribunal in the case of Elgi Ultra Applies Limited (supra) has observed as follows: 7.It is also seen that in terms of note 2(b) of Section XVI parts if suitable for use solely or principally with a particular kind of machines are required to be classified along with the main item. These parts have become part of DIS and manufactured as per ISI specifications for use only as DIS is required to be considered for classification along with the entire system by applying Note 2(b) of Section XVI. Further even Note 4 of Section XVI reads as follows : Where a machine (including a combination of machines) consists of individual components (whether separate or inter-connected by piping, by transmission devices, by electric 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 . On a reading of this, it is clear that if the machines consist of individual components (whether separate or inter-connected by piping, by transmission devices) intended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances and machines of this heading. Parts falling in this heading thus include, inter alia, reservoirs for sprayers, spray nozzles lances and turbulent sprayer heads not of a kind described in heading 84.81. On a careful reading of the above note, it is seen that an underground net work (distribution lines and branchlines which carry the water from the control station to the irrigation zone) and also surface net work (dripper lines incorporating the drippers) constitute irrigation system and the above note also emphasises that such system are classifiable under heading 84.24 as functional units within the meaning of Note 4 to Section XVI. The parts thereof are also brought under this Section and the parts as are referred to above include reservoirs for sprayers, spray nozzles, lances and turbulent sprayer heads, to form the irrigation system as they carry out functions of the ground net work for distribution of water and surface net work. The irrigation system basically is of these pipes and the other items referred to above, which carry out the functions of distribution and dispersing or spraying in terms of the description under Chapter 84.24 and the said sub-h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be preferred to a general heading is not applicable in the instant case. We also find that the case laws cited by the Ld. AR are not on the very issue of classification of PVC pipes when used as parts of irrigation systems. The case of Salzer Controls Limited (supra), the issue of discussion was about conduit tubings used to protect electrical wiring/cables and in control and communication panel and therefore cannot be applied to the present case as facts are different. In case of Paper Products Limited, the Hon ble Supreme Court has held that the departmental officers cannot take a stand which is contrary to the circulars/directions issued by the Board and in this case too is different from the case before us for consideration as far as the facts are concerned. The case of Usha Martin Industries relied upon by the Ld. AR is also of no use as it details the exemption notification. Thus, we find that the case laws cited by the Ld. AR are not in the context of classification of parts of irrigation systems and therefore not to be relied upon. As the issue is squarely settled by the cases discussed above, we find that the arguments of Ld. AR are not tenable. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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