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TMI Blog2020 (2) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit of Notification No. 12/2012-Cus. available to Rotary Tiller, may also be extended to power tiller and requested the Under Secretary of their own Department, to take up the matter with the Finance Ministry in regard to eligibility of exemption notification or classification. We also note that the Ministry of Agriculture is not expert in classification of goods under the Customs Act, valuation, determination of duty or availability of benefit of exemption notification. They have rightly applied their mind from their point of view and felt that the exemption notification must be available to power tiller also. This view of the Ministry of Agriculture, cannot determine the eligibility or otherwise of the exemption notification to power tiller. It must be determined solely based on the way exemption notification as it is drafted. A bare perusal of the exemption notification, shows that it is available, inter alia, to rotary tiller/weeder. It does not suggest directly or indirectly that it is available to power tillers also - Therefore, in our considered view, the benefit of exemption notification is not available to the power tillers imported by the appellant. Confiscati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving benefit of the exemption Notification to the imported goods holding that they are eligible for exemption under Sl. No. 399(A) of the exemption Notification No. 12/2012-Cus., dated 17-3-2012. He also set aside the order of confiscation, imposition of fine and penalty under the Customs Act, 1962. 5. Aggrieved by this order, the Revenue has filed the present appeal on the following grounds : (i) That the Learned Commissioner of Customs (Appeals), Kolkata grossly erred in his observation and ignoring the fact that Power Tillers are pedestrian driven machine having wheels which used mainly for agricultural purpose where they can be used for tilling of farms with the help of implements like Rotary Tiller, Weeder, disc plough, disc horrows, ridger, etc. These Power Tiller can also be used for carrying fodder goods, etc. from one place to another by way attaching a cart behind them. Whereas, Rotary Tiller are implements and are used in the field/farm for tilling of soil or breaking up of soil having blades. Power Tillers has driven feature by an engine but Rotary Tiller has rotate feature of tiller. A tiller may rotary or non-rotary depends on rotation or strai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otary Tiller may be driven with power and without power and a power tiller may with rotary tiller or without rotary feature tiller. The Customs Notification No. 12/2012-Cus., dated 17-3-2012 [Sl. No. 399(A)] grants concessional rate of duty benefit to the item Rotary Tiller and not Power Tiller . (vi) That the Learned Commissioner of Customs (Appeals), Kolkata has miserably failed in not appreciating the fact that the Bills of Entry were facilitated by the RMS of the EDI System and under the Self-Assessment Rules, 2011 , it is the sole responsibility of the importer to declare correct declaration/entry or claim of any duty exemption benefit in the Bill of Entry under Section 46 of the Customs Act, 1962. In the instant case, the provision of Self-Assessment Rules, 2011 has been violated by way of misdeclaration in declaring their goods as Rotary Tiller , whereas the declared goods actually, were found to be Power Tillers . Further, the Customs Notification No. 12/2012-Cus., dated 17-3-2012 [Sl. No. 399(A)] grants concessional rate of duty benefit to the item Rotary Tiller and not Power Tiller . Once misdeclaration is established, it attracts provision of Section 111(m) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re are also other tractors, which are primarily used for agriculture and related works. Tractors used for agriculture, can be either pedestrian controlled tractors, which move with the load but are controlled by the operator walking behind it or tractors in which the driver is seated on it. In both types, the tractor by itself does not plough the soil or loosen it. These activities are done by attachment to the tractor. The tractor itself can be put to many uses depending upon, which attachment is used. The pedestrian controlled tractors are also known as Power Tillers or walking tractors. 9. The exemption Notification No. 12/2012-Cus., dated 17-3-2012, Sl. No. 399(A) in question is reproduced below : Sl. No. Chapter or Heading or sub-heading or tariff item Description of goods Standard rate Additional duty rate Duty rate condition No. 1 2 3 4 5 6 399 84 or any Chapter (A) The following goods, namely : (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ller, which were imported by the respondent. (b) whether the imported goods were liable for confiscation under Section 111(m) of the Customs Act, 1962 and the fine and penalty are liable to be upheld. 13. In so far as the first point of law is concerned, it has been discussed at length about the distinction between the Power Tiller, which in the form of pedestrian controlled tractor, and the Rotary Tiller, which are equipment to till the soil. Tractors including pedestrian controlled tractors or power tiller are classifiable under Customs Tariff Heading 8701. Rotary tillers are classifiable under Chapter Heading 84 as agriculture equipment. The Rotary tiller is specifically covered under Customs Tariff Heading 8432. As there was a confusion among the some field formations, this matter was discussed at length in C.B.E. C. s Circular. No. 45/2001-Customs dated 7th August, 2001, in which, it was clarified as follows : F. No. 528/4/2001-CUS(TU) Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs Subject : Classification of pedestrian controlled tractors/power tillers as rotary tillers under Heading 84.32. - Rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified under CTH 87.01 as tractors and not as rotary tillers under Heading 84.31. The Custom House may, therefore, kindly ensure that pedestrian controlled tractors or walking tractors are not cleared in the guise of rotary tillers. Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board. Please acknowledge receipt of this circular. 14. We have gone through the letter/memo of the Ministry of Agriculture relied upon by the first appellate authority in the impugned order. This only mentions that the benefit of Notification No. 12/2012-Cus. (supra) available to Rotary Tiller, may also be extended to power tiller and requested the Under Secretary of their own Department, to take up the matter with the Finance Ministry in regard to eligibility of exemption notification or classification. We also note that the Ministry of Agriculture is not expert in classification of goods under the Customs Act, valuation, determination of duty or availability of benefit of exemption notification. They have rightly applied their mind from their point of view and felt that the exemption notification must be available to power tiller also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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