9911796707
TMI Blog2025 (2) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... and brake", etc. declared as 'the parts for concrete mixers' / 'Components of Mobile Concrete Mixers'. The importer was of the opinion that 'Concrete Mixers' or what they have referred to as Self-Loading Concrete Mixtures (SLCM), are classifiable CTH 8474 3110 and the imported parts for the said machines were mainly classified under CTH 8474 which carried BCD at 7.5%. The goods were allowed clearance accepting the Customs Tariff Heading (CTH) claimed by the importer. Subsequent to the clearance, it appeared to the department that 'Concrete Mixers' were classifiable under CTH 8705 and not under CTH 8474 and hence the parts of the said machine would be classifiable under CTH 8708 and would carry a higher BCD. Show Cause Notices (SCN) were issued and decided during various periods which is summarised in the table here under as submitted by the importer; APPEAL NO. FILED BY PERIOD OF DISPUTE DUTY DEMAND C/40510/2015 Appeal filed by Ajax Fiori against Order-in-Appeal No. 212/2014 dated 21.11.2014 2009-2011 Rs. 59,70,683/- C/42422/2016 Appeal filed by Ajax Fiori against Order-in-Original No. 50342/2016 dated 27.09.2016 September 2014 to January 2015 Rs. 51,47,933/- C/CROSS/4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stated that the SLCM manufactured by the Appellant is classifiable under Chapter 84 and hence, the parts imported are correctly classifiable under CTI 8474 9000. He submitted that CTH 8474 3110 specifically covers 'concrete mixers'. On a reading of the HSN Explanatory Notes for Heading 8474 and Heading 8705, it emerges that a concrete mixer is excluded from Heading 8474 in the following two scenarios. a. If such concrete mixer is permanently mounted on a railway wagon or lorry chassis; (OR) b. If the concrete mixing equipment is not completely integrated with the chassis and the chassis does not reach a condition of being incapable of use for other purposes. The Ld. Advocate stated that the chassis and the concrete mixer are completely integrated with one another to form one integral mechanical unit. Thus, the SLCMs manufactured by the Appellant which are specifically designed for each other and so integrated that the chassis cannot be separately used for any other purpose are classifiable under CTI 8474 3110. However, revenue has placed reliance on Sl. No.10 of the HSN Explanatory Notes to conclude that the SLCMs manufactured by the Appellant are classifiable under CTH 8705 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured by them are not mounted on any wagon or lorry, but the fact that these 'Mobile Concrete Mixers' are not standalone, static machines also cannot be denied. Also, the mobility of the 'Mobile Concrete Mixers' is not due to attachment of wheels to the machine but admittedly is due to an integrated structure which has assumed the shape and function of a vehicle, to which homologation tests by ARAI and the provisions of Central Motor Vehicles Act apply. The Ld. AR referred to the Explanatory Notes and stated that if Explanatory Notes for HSN 87.05 are analysed, it is seen that emphasis is on the nature of base. The wording "mobile machines, formed by mounting equipment on a vehicle chassis of Chapter 86 or 87......" further emphasizes the formation, implying an integrated structure to make the product classifiable under CTH 87.05, amongst others, as the case may be. The 'Mobile Concrete Mixers' manufactured by the importer-appellant would clearly fall in this category of a "formed" product, admittedly integrated. The importer-appellant has referred to another set of HSN Explanatory Notes (2007) to Section XVII (for the purposes of CTH 8705) as extracted below. "87.05 This h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evident that even other construction equipments such as fork-lift truck (CTH 8427), mobile crane (CTH 8426) etc. which are classifiable under Chapter 84 are covered under this Category. If the submission of the Department is taken its logical end, then all mobile machineries that require ARAI Certification will always be classifiable under Chapter 87, which will be contrary to the scheme of classification under Customs Tariff and the HSN Explanatory Notes which are globally followed. They reiterated the prayer made. 4. We have gone thorough the appeal memorandum, cross objection and the related documents and have also heard the rival parties. A detailed response was made by the importer and a spirited rejoinder by revenue. However, we find that we are called upon to first decide upon the classification of a product which has not been imported in the impugned case and then decide the classification of its imported parts. 4.1) We find that in the present case the importer is also the manufacturer of SLCM for which the imports of parts have been made. They possess a Central Excise Registration Certificate for 'Self Loading Concrete Mixers' falling under Tariff Heading 8474. Once th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
