9911796707
TMI Blog2024 (3) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... on on the Appellants and on conclusion, Revenue opined that the machinery manufactured by the Appellants requires to be classified as under: Items manufactured and cleared by Appellant Classification under Central Excise Tariff Heading, 1985 The parts of parboiling machinery 84199090 Bucket Elevators 84283200 Parts of Bucket Elevators 84313910 Blowers 84145930 Parts of Blowers 84149040 Cyclones 84213990 Parts of Cyclones 84219900 Parts of weigh bridge 84239020 Brass scrap 74040022 MS scrap 72044900 SS scrap 72042190 CI scrap 72041000 Aluminium scrap 76020090 Other articles of steel 73269099 Reducer assembly 73079990 Hopper 73102990 Bolts and Nuts 73181900 Shafts 84831099 3. Accordingly, two Show Cause Notices dt.08.12.2015 & 05.05.2016 were issued to the Appellants seeking demand of duty of Rs.2,86,21,289/- and Rs.25,81,412/- respectively along with interest and penalty. The proposals raised in the SCNs were confirmed by the Original Authority vide Impugned Order. Hence, these Appeals. 4. Shri Tej Prakash Toshniwal, Advocate appearing for the Appellant submits that the confirmation of duty by the Impugned Order is contrary to law and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification. 7.1 With reference to Bucket Elevator and parts thereof, Revenue relies on the material available on Wikipedia, Internet, the statement of Shri Purandar Reddy and the explanatory notes to the Chapter sub-heading 8428 under the heading 'continuous machines' and the Tariff heading itself. 7.2 Regarding the blowers and impellers, cyclone & airlock and other goods, viz., 'Housing', 'Flaps', 'Angles/side fans', 'outlet ring assembly', paddy bins, housing covers, MS shafts, rods, Shaft keys, Hopper (some cases with stand) drums, bolts and reducer assembly, Revenue relies on the averment that all of them have independent functions and not necessarily only with the rice manufacturing machinery. 8. We find that other than the statement of Shri Purandar Reddy, Department has not taken any steps to obtain technical opinion of experts in respect of the impugned goods. The fact that the goods are manufactured by the appellants are but for the rice mill industry, as submitted by the appellants. Revenue could not show even a single example of such independent function of the items manufactured and cleared. "3.................it has not been disputed that the appellants were manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Milling industry or for the working of cereals or dried leguminous vegetables, other than farmtype machinery 8437 10 00 Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables U Nil - 8437 80 Other machinery: 8437 80 10 Flour mill machinery U Nil - 8437 80 20 Rice mill machinery U Nil - 8437 80 90 Other U Nil - 8437 90 Parts 8437 90 10 Of flour mill machinery Kg. Nil - 8437 90 20 Of rice mill machinery Kg. Nil - 8437 90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute, therefore, the combination of machines and the conveyors and elevators supplied by the appellants alongwith other rice milling machinery to the rice millers is a combination of machine which ultimately perform the function of rice milling. Thus, as per Section notes the entire machinery is classifiable under heading 8437 which is for machinery used in milling industry and it is not disputed that these elevators and conveyors being manufactured by the appellants were not used for milling industry. The Central Excise Tariff is clear with respect to this aspect that the said machines if supplied as a combination of machines would be covered under the main heading 8437, therefore, the reliance on the explanatory note to HSN is not warranted as the HSN explanatory note is not a law but are they are only guiding factor for classification when the section note to the Central Excise Tariff is clear on the aspect wherein it has been clarified that the said items are to be classified under the main machine. Therefore, the department cannot place reliance upon the explanatory notes to change the classification of the said items. 7. We further take a note of the fact that in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 8437. 9. The Ld. AR heavily relied on the decision of Eminence Equipments Pvt. Ltd. (supra) to say that conveyors and elevators used for rice mills is to be classified under chapter heading No. 8428. We have gone through the facts in the case of Eminence Equipments Pvt. Ltd. (supra) was not manufacturing the elevators and conveyors only for rice millers but were supplying the same to other industries like breweries etc., therefore, the items manufactured by Eminence Equipments Pvt. Ltd (supra) were of general nature and not for specific use to the machines of milling industry. Further, the conveyors and elevators manufactured by M/s Eminence Equipments Pvt. Ltd. (supra) did not come under the category of composite machines as they were supplying only elevators and conveyors and not combination of machines. Therefore, the facts of the present appellants are distinguishable from the facts of the case of M/s Eminence Equipments Pvt. Ltd (supra). Moreover, in the case of Eminence Equipments Pvt Ltd. (supra) this Tribunal has not considered the chapter note 3, 4 and 5 of Section 16 of Central Excise Tariff Act, 1985. Therefore, on that account also the decision of the said case is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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