9911796707
TMI Blog2011 (3) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... the par-boiling plant/machinery manufactured by the appellants is classified under Chapter Heading 84198990, drier plant/machinery under 84193100, par-boiling and drying plant which performs principal function of cooking/steaming and drying under 84198990, other parts specifically designed for par-boiling and drying plants under 84199090, SS scrap manufactured by the appellants under 72042190 other waste and scrap under 72044900 and has confirmed the duty demand of Rs. 1,00,62,104/- with interest and equal amount of penalty. The issue involved in this appeal relates to the classification of par-boiling plant and drier plant. 2. The learned advocate for the appellants while assailing the impugned order submitted that the period involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t par-boiling and drying plants function independently of rice mill and they have specific function different from one performed by the rice mill as such and, therefore, no fault can be found with the classification of the product under Heading 8419. Considering the rival contentions, the short point for consideration which arises is whether par-boiling and drying plant are classifiable under Chapter Heading 8419 as claimed by the Department or under 8437 as claimed by the assessee. 4. The Board Circular dated 19th May, 2010 in para 4.3 reads as under :- "4.3 Chapter Note 2 provides that if a machine can be . classified based on description under heading 8419 and also under 8437, in that case it should be classified under 8419 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said observation by the Board has taken note of Section Notes 3 and 4 of Section XVI as well as Chapter Note 2 to Chapter 84 of the Tariff Act. Having taken note of those provisions of law, the Board in para 4.2 of the Circular has observed thus :- "4.2 Parboiling machinery, drier plant and rice mill in conjunction form the paddy processing. Thus such a plant can be considered as composite machines fitted together to perform the function of rice milling which is the principal function of such a combination. Thus in terms of the Section Note 3 & 4 even if one of the component/machinery is performing complementary functions, the classification of such component/machinery will be governed by the principal function being performed, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... establishment that itself cannot transform the machinery or the plant comprising of par-boiling and drying machinery into a composite machinery forming part of the rice mill. Whether a plant can independently function or not has to be ascertained by referring to independent functioning capacity of each machine or machinery. The authority below based on the description and functioning power of par-boiling and drying plants as well as admitted facts by the appellants representative has arrived at the finding about its independent functioning and not being forming a part of the composite plant of rice mill. Merely because such a plant is used along with the rice mill that itself will not transform it into a composite machinery inclusive of ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticee had also submitted an affidavit dated 9th November, 2010 stating that the goods manufactured and supplied by their firm were used exclusively by the rice mills. Therefore, the case of the noticee is squarely covered by the clarification issued by the Board vide above stated Circular. 11. Obviously the Commissioner in the order dated 9th August, 2010 on the basis that there was new material placed before the Commissioner to justify a different view from the one taken in relation to the earlier period has accepted the classification as proposed by the assessee which is contrary to the view taken in the earlier order for the earlier period. Whether there was really additional material, whether the subsequent view taken is a justi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
