9911796707
TMI Blog2004 (8) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), under the impugned Order. 2.1 Shri L.P. Asthana, learned Advocate, mentioned that the Appellants manufacture and supply the following mechanical equipment for Hot Strip Mill : (i) Run Out Roller Table, (ii) Interconnecting Roller Table Between Coil 3 & 4, (iii) Coiler Track Way, (iv) Coil Conveyor to connect Coiler 4 & 5, (v) Roller Bridge including Side Guide on Top of Coiler 1 & 2, (vi) Roller Bridge on top of Coiler 3, (vii) Simple Parts, (viii)&n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55.90. 3.1 The learned Advocate submitted that a complete rolling mill could never be manufactured and supplied by a single manufacturer because of huge volume, weight, specialization and various fields of engineering being involved; that a rolling mill would come to existence only at site after the complete erection & commissioning exercise have been completed; that no sooner the compete Rolling Mill comes into existence, it shall cease to qualify as goods as it becomes immovable and looses the marketability and movability tests; that it is for this reasons that the Heading 84.55 "Metals Rolling Mills & Rolls therefore" has been bifurcated as under : 8455.10 - All goods other than parts 8455.90 - Parts 3.2 He contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry equipment of roller mill is a machine squarely covered under sub-heading 8455.10 of the Tariff. The learned Advocate relied upon the decision in the case of Flat Products Equipments (I) Ltd. v. CCE, Mumbai-III, 2000 (115) E.L.T. 629 (T) wherein the Tribunal has held that parts of rolling mills are assessable to duty under sub-heading 8455.10 as complete machine and not under Heading for parts i.e. 8455.90 in view of Rule 2(a) of Rules of Interpretation and General Explanatory Notes relating to unassembled machine in Section Note XVI of H.S.N. 4.1 The learned Counsel, further, submitted that the finding of the Commissioner (Appeals) to the effect that the recourse to HSN was taken to over ride the statutory Rules of Constructions i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supply of Metal Rolling Mill whereas in the present case, the Appellants had manufactured only 70% of the machine; that this observation is not correct as there is no provision in the Central Excise Tariff Act which stipulates a fixed percentage of goods supplied under a contract to merit classification as complete machines. 5. Countering the arguments, Mrs. Neeta Lal Butalia, learned SDR, submitted that the Appellants have not supplied complete Metal Rolling Mills in the present matter; that this is evident from the 'Scope of Supplies & Services' according to which the contract was awarded to four concerns; that thus what had been supplied by the Appellants were only parts of Rolling Mill; that accordingly, the impugned goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airconditioning, ventilation and fire protection system, compressed air system, de-scaling system (parts), run out and interconnecting roller tables, coiler truck way, coil conveyor, oil, grease, lubricants upto commissioning. Rule 2(a) of Rules for Interpretation of the Schedule applies only when incomplete or unfinished goods have the essential character of the complete or finished goods. The Appellants have not adduced any material on record to prove that the goods supplied by them have the essential character of complete Rolling Mills. In view of this, the impugned goods cannot be treated as complete Rolling Mill for the purpose of classification under sub-heading 8455.10 of the Tariff. Accordingly the decision in the case of Flat Prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry equipment and not as parts. We observe from the perusal of the impugned Order that the Commissioner (Appeals) has not adverted to this aspect of the matter as to whether these goods are auxiliary equipment or parts of rolling mills. Explanatory Notes of H.S.N. also clearly mentions that in general, the operation of rolling mills requires a large amount of auxiliary equipment. If these are auxiliary equipment they have to be classified in their appropriate heading as the Appellants are not clearing Rolling Mill in unassembled condition. If on the other hand, they are Parts of Rolling Mills, their classification has to be made as per the principles contained in Note 2 to Section XVI of the Tariff. We, therefore, remand the matter to the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
