TMI Blog1994 (4) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at the site. The original authority classified this product under sub-heading 85.09 of Act, 1985 while the appellants claimed the classification under sub-heading 84.37 of CET Act of 1985. The respective heading read as follows : 84.37 8437.00 Machines for cleaning, sorting or 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 farm type machinery. 85.09 8509.00 Electro-mechanical domestic appliances with self-contained electric motor. In the case of Workwell Engineering, show cause notice, dated 22-6-1990 was issued wherein it was alleged that Gharghanti valued at Rs. 15,53,779 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. The appellant had taken this stand that prior to the introduction of new Tariff, their product namely Gharghanti without motor stood classified under tariff entry 68 not as domestic electrical appliances. From 1-3-1986 they had sought classification with the said product under 8437.00. Their classification list was not accepted by the Anand Range and they were advised to file classification list showing their product as falling under 85.09, for the reasons that other manufacturers had filed classification list seeking classification under that heading. Therefore, as desired by the range staff, they have filed the classification list under 85.09. They submitted that the Assistant Collector classified their product ex parte without notice. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat credit and hence demand was not sustainable. 3. Meema Engineering Works also filed a similar reply. 4. Assistant Collector rejected their contention and held that although the product was classifiable under Heading 8437.00 but it does not bar the department to modify the classification in view of the latest developments. It was held that from the structure of DEFM, it is seen that electric motor is connected by the V-belt to the shaft which located within the cabinet. Therefore, it will not be correct to view DEFM as without a self-contained motor. Therefore, the Asstt. Collector had held that the product of the party satisfies all the conditions of Section Note No. 3 of Chapter 85, since it is a food grinder or mixer as per the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein so long as the machinery performs the function of milling of cereals, grains and seeds. The appellants submitted that the cabinet can only be used for domestic flour mill and does not have a characteristic electro-mechanical device nor it can contain motor. Therefore, it cannot be brought within the description of sub-heading 85.09. He submitted that cabinet is a part of flour mill of which the classification has to be considered only under sub-heading 8437.00. He submitted that Hon ble High Court of Gujarat in the case of Balkrishna Ranchodlal Shah as reported in 1979 (4) E.L.T.(J 377) (Guj.) = 1991 (34) ECR 311 (Guj.), has had held that Grinders (domestic) are not domestic electric appliances, if they do not have inbuilt electric mot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation is the classification to be adopted under the new Tariff Act under different tariff descriptions. The Revenue wants classification under sub-heading 85.09 as Electro-mechanical appliances with self-contained as electric motor . This tariff entry reads similar to the one under item 33C which reads - `Domestic electric appliances not elsewhere specified . Explanation-I : `Domestic electrical appliances means electrical appliances normally used in the household and similar appliances used in hotels restaurants, hostels, offices, educational institutions, hospitals, train kitchens, air craft or ships pantries, canteens, tailoring establishments, laundry shops and hair dressing saloons". After a detailed examination by Hon ble Gujarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanatory Notes which indicated that such stones will not fall under Heading 68 but would be classifiable under Chapter 84 or 85. The Tribunal also noted the Board s Circular on this issue. Therefore, Tribunal s ruling in M/s. Vishvakarama (Emery Stonnes ) Inds. (P) Ltd. is clearly distinguishable. The present tariff item under which the Revenue has classified the item is under sub-heading 85.09 which reads - `Electro-mechanical domestic appliances with self-contained electric motor . In view of the clear ratio of the Supreme Court ruling in the case of M/s. Nat Steel Equipment Pvt. Ltd. (supra), the item has to be considered as an electro-mechanical domestic appliances, as the cabinet manufactured by the appellant is used for domestic f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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