2001 (4) TMI 355 - AT - Central Excise

Summary

Issues: Classification of grain driers under Tariff headings 84.19 and 84.37

In this judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand is the classification of grain driers manufactured by the appellant under the Tariff headings 84.19 and 84.37. The Commissioner (Appeals) had classified the product under heading 84.19, rejecting the manufacturer's claim for classification under heading 84.37. The article in question comprises a tray and heater used for drying grain and seed by circulating heated air. The appellant argued that the machine did not meet the requirements specified in the Explanatory Notes for heading 84.19, which involve a change in material due to temperature. However, the Tribunal disagreed, stating that the transformation of grain from moist to dry grain fulfills the kind of transformation contemplated by the notes, as indicated by examples like drying and cooling. The Explanatory Notes also mention dryers for agricultural products, supporting the classification under heading 84.19.

Furthermore, the Tribunal found that the heading claimed by the manufacturer, which includes machinery used in the milling industry, did not apply to the grain drier in question. The Explanatory Notes for this heading specify machinery for treating grain before milling, such as mixing, grinding, or sorting machinery, which does not align with the broader applications of the appellant's machine. The appellant's own literature indicated that the machine was used for products beyond the milling industry, like oilseeds and seeds, and could be utilized in distilleries and seed processing plants, demonstrating its versatility. Therefore, the Tribunal concluded that there was no basis to interfere with the classification decision and dismissed the appeal.