TMI Blog2022 (3) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... free and safe for usage and have smoother inner surface, scientific design which makes the crate, Injury-free and are washable - the Content of the applicant that the impugned goods are poultry keeping machinery/equipment to be a covered under Chapter 8436 of the Tariff cannot be agreed upon. Whether the impugned products are classifiable under Chapter 3923 of the Tariff? - HELD THAT:- The impugned product i.e. poultry crate is an article of plastic. It is used for the conveyance of poultry and from a reading of para 5.5.2 above it is clear that the said product is clearly covered under sub heading 392310 of the Tariff. However it is seen that the subject product does not fall under the T.I. 39231010; 39231020; 39231030; and 39231040. Thus, the impugned product will be covered under the residual T.I. i.e. 39231090 of the Tariff - the impugned product is correctly covered under T.I. 39231090 and not at all covered under T.I. 84362900. The applicant has contended that, as per section 3(c) of general rules for the interpretation of the harmonized system (HSN) If an item is prima facie classifiable under two or more headings, the same shall be classified under the heading which oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , MIDC, Andheri East, Mumbai City, Maharashtra, 400093 is engaged in manufacturing of wide range of products used for storage, handling and transportation of goods, including products like plastic crates, poultry crates, plastic pallets, insulated ice boxes fish tubs, waste management tools, road safety products, hospitality solutions, aquaculture fish cages, manhole chambers, ripening solutions, material handling equipment, metal shelving racking systems. 2.2 The present application has been filed in respect of classification of the product poultry crates' which is used for safe and convenient transportation of live birds. Detailed concept of poultry crates and its usage 2.3 poultry crates' is used for transportation of live birds from farm to processing plant. To move them, however industry is faced with several challenges as birds have to be gathered, loaded and transporting and unloading into a complete new environment. Some of the challenges include harvesting the birds, feed withdrawals and temperature variation during transport. If control in transportation is poor it will result into decreased meat quality. The concept of poultry crates came into e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther loaded directly or passed to another person positioned on the truck to allow filling of upper level crates. 2.5 In the case of turkeys, a conveyor system (loader), is commonly used to move the heavy birds to different crates by moving and elevating the end of the belt. Turkeys can usually walk on the conveyor belt while broilers tend to sit. According to the manufacturer, the system can handle 1,000- 2,000 heavy turkeys per hour. It should be noted that the system is also used to move pullets from the growing farm to the egg laying farm. Relative to moving hens, Kettlewell et al. (2000) observed that there was a much lower level of injury moving pullets. This is in part due to the higher tolerance of pullets to handling and transporting as compared to laying hens, which are more prone to osteoporosis. 2.6 In any case, care should always be taken to reduce injury and equipment should be kept in good shape (e.g., no place for wing catching, no sharp corners). At the processing plant trucks are unloaded close to the shackle line with the help of hydraulic platforms that assist the unloading crew in reaching the birds at the different levels. Classification of product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id that the product Poultry crate is not classifiable under Chapter 39 as plastic container /crates hence appropriate classification for the same is Chapter 84 sub heading 8436 attracting rate of tax @ 6% each under Central and State Tax. B. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW AND/OR FACTS 2.11 The impugned poultry crates are manufactured specially for the purpose of use in carrying and transporting live birds from farm to plants hence they are different from ordinary crates /containers hence classifiable under chapter heading 8436 as poultry-keeping machinery. These poultry crates are manufactured keeping into consideration the safety, hygiene and reduced mental stress to live birds hence classifiable under chapter 84, chapter heading 8436 and tariff item 84362900 and attracting rate of tax as 6% under CGST and MGST respectively. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFIER SUBMISSION DATED 13.09.2021:- 3.1 Chapter Heading 8436 covers- Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping Machinery , incl. germination plant fitted with mechanical or thermal equipment; Poultry incubators and brooders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l contentions made by both, the applicant and jurisdictional officer at the time of preliminary as well as the final hearings. 5.2 The basic issue before this authority is of classification of poultry crates , manufactured by the applicant. 5.3 The primary contention of the applicant is that the impugned product falls under Chapter 8436 as poultry-keeping machinery because the impugned poultry crates are manufactured specially for the purpose of use in carrying and transporting live birds from farm to plants; that they are different from ordinary crates /containers and further these poultry crates are manufactured keeping into consideration the safety, hygiene and reduced mental stress to live birds. The main thrust of the applicant's argument supporting their contention for the product to be classifiable under Chapter 8436 is that the crate made from hygienic food grade HDPE material, is rust free and safe for usage and has smoother inner surface, scientific design which makes the crate, Injury-free and further the crate can be easily cleaned and washed ; the said goods are used exclusively in poultry industry and not elsewhere and designed to transport live birds from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 392310 of the Tariff. However it is seen that the subject product does not fall under the T.I. 39231010; 39231020; 39231030; and 39231040. Thus, the impugned product will be covered under the residual T.I. i.e. 39231090 of the Tariff. 5.6.1 From the above discussions we conclude that the impugned product is correctly covered under T.I. 39231090 and not at all covered under T.I. 84362900. The applicant has contended that, as per section 3(c) of general rules for the interpretation of the harmonized system (HSN) If an item is prima facie classifiable under two or more headings, the same shall be classified under the heading which occurs last in numerical order and when two views are possible, the one favorable to the assessee has to be adopted. 5.6.2 In the subject case the impugned product i.e. poultry crate is seen to be classifiable exclusively under Chapter 39231090 and therefore the question of taking into account, the general rules for the interpretation of the harmonized system (HSN), does not arise at all. 5.7 In view of our decision that the impugned product is classifiable under Chapter 39231090, we do not discuss the third question raised by the applicant. 06. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
