Rice Mill Rubber Rollers classified under CTH 4016 9990 not CTH 8437 following Supreme Court precedent

CESTAT New Delhi dismissed the appeal regarding classification of imported Rice Mill Rubber Rollers. The Tribunal held that these goods are classifiable under CTH 4016 9990 rather than CTH 8437, following SC precedent in Kohinoor Rubber Mills case. The decision was supported by HSN Explanatory Note serial number 9 under Item 40.16 and General Rules for Interpretation of Tariff Schedule Rule 1. CESTAT Chennai had previously reached identical conclusion in Commissioner of Customs v. Nirmala Agencies case. The Commissioner (Appeals) order was upheld without infirmity.

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Issues Involved:
1. Classification of "Rice Mill Rubber Rollers"
2. Demand of Differential Duty and Interest

Summary:

1. Classification of "Rice Mill Rubber Rollers":
The appellant contested the reclassification of imported "Rice Mill Rubber Rollers" from CTH 8437 90 20 to CTH 4016 9990. The appellant argued that the goods were cleared after due verification and were specifically designed for pneumatic de-husking machines, meriting classification under CTH 8437. The Commissioner (Appeals) relied on the Hon'ble Apex Court's decision in M/s. Kohinoor Rubber Mills Vs. Collector of Central Excise, Chandigarh [1997 (92) ELT 36 (SC)], which classified similar goods under CTH 40.16, citing Section Note 1(a) of Section XVI that excludes articles of vulcanized rubber used in machinery from Chapter 84. The Tribunal upheld the classification under CTH 4016 9990, noting that the imported goods were made of synthetic vulcanized rubber, which falls under the exclusion in Section XVI.

2. Demand of Differential Duty and Interest:
The show cause notice demanded a differential duty of Rs. 5,52,709/- u/s 28 of the Customs Act, along with applicable interest u/s 28AB. The Tribunal, after examining the relevant Section Notes, Chapter Notes, and previous judgments, upheld the demand. The decision referenced the Explanatory Note at serial number 9 under Item 40.16 of the HSN, supporting the classification under CTH 4016 9990. The Tribunal found no infirmity in the order of the learned Commissioner (Appeals), thereby dismissing the appeal filed by the appellant.

Conclusion:
The Tribunal confirmed the reclassification of the imported "Rice Mill Rubber Rollers" under CTH 4016 9990 and upheld the demand for differential duty and interest, dismissing the appellant's appeal.

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