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TMI Blog2024 (4) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal filed by the appellant. 2. The appellant had filed four Bills of Entry Nos. 7675641 dated 16.08.2012, 8194109 dated 11.10.2012, 8361533 dated 31.10.2012 and 8776682 dated 17.12.2012, for clearance of imported goods declared as "Rice Mill Rubber Rollers", classifying the goods under CTH 8437 90 20. The said goods were assessed accordingly and out of charge granted. Subsequently, in pursuance of the audit objection TAM No. CRA/TKD/257/2012-13/1166 dated 14.02.2013, the appellants were issued show cause notice dated 01.03.2013 proposing the classification of the said goods under Heading 4016 9990 and demanding differential duty of Rs.5,52,709/- under Section 28 of the Customs Act along with applicable interest under Section 28AB of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H 40.06, wherein the Hon'ble Apex Court relied upon Section Note 1(a) of Section XVI and inferred that Section XVI did not cover articles of the kind used in machinery of unhardened vulcanized rubber. 3.1 It may however be pointed out that the Hon'ble Apex Court in the M/s. Kohinoor Rubber Mills case had observed that by virtue of Explanatory Note at serial number 9 under item 40.16 of the HSN includes "other articles for technical uses including parts and accessories of machines and appliances falling under, amongst others, Section XVI". The appellant submits that the Hon'ble Apex Court in the matter was concerned with Rubber Rollers without fitments whereas in their own case the goods were specifically designed as components of the Rice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the classification of the goods under Chapter 84, it would be imperative to refer to the Section Note concerning the same. For ready reference the relevant part of Section XVI is reproduced as under: SECTION XVI MACHINERY ANY MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCES; AND PARTS AND ACCESSORIES OF SUCH ARTICLES NOTES : 1. This Section does not cover: (a) Transmission or conveyor belts or belting, of plastics of Chapter 39, or of vulcanized rubber (heading 4010), or other articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses, of vulcanized rubber other than hard rubber (heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers as it would lead to frequent breakdowns, nor it is the case of the appellant that the rubber so used was hard rubber. It also nowhere emanates from records that the imported goods were made of hard rubber, nor is it in the least the contention of the appellant before us. In view of the tensile strength required and the fact of nonusability of hard rubber for the given purpose and there being no claim to the effect from the appellants, it arises that the impugned goods were synthetic vulcanized rubber appropriately made to have requisite elasticity and or other characteristics. 8. In this backdrop, it would also be necessary to invite attention to CTH 40.16, which reads as under: "40.16 Other articles of vulcanised rubber other than h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up holders (suction grips) ........................... (e) Rubber boats and rafts ...................... (f) Parts and accessories of musical instruments .................... (g) Mattresses, pillows and cushions of cellular rubber, ..................... (h) Toys, games and sports ........................................... (i) Date, sealing or numbering stamps, and the like, designed for ......................................................................... ( Emphasis Supplied ) 9. The reading of the serial number 9 above, clearly suggests inclusion of Rice Mill Rubber Rollers under this Heading within its ambit as pertained to machine and appliances of Section XVI. Elaborate reference was made to the Apex Court's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, that the Tribunal was right in arriving at the conclusion that they should be classified under Item 40.16. ( Emphasis supplied ) 10. As observed by the Hon'ble Apex Court what supplements the aforesaid classification is the Explanatory Note at serial number 9 under Item 40.16 of the Harmonized Commodity description and Coding System (HSN), as also noted by the Hon'ble Apex Court in its order. While it is not disputed that parts of rice mill machinery are incorporated under CTH 84379020, however, by virtue of the relevant Chapter Notes and Section Notes as referred above and in accordance with Rule 1 of the General Rules for the Interpretation of the Tariff Schedule, of the import tariff schedule, it is undeniable that the imported g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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