2024 (4) TMI 83 - AT - Customs

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 ... Classification of imported goods - Rice Mill Rubber Roller - classifiable under CTH 4016 or under CTH 8437? - N/N. 12/2012-CE (Sr. No. 155) dated 17.03.2012 - HELD THAT:- The reading of the serial number 9, 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 decision in KOHINOOR RUBBER MILLS VERSUS COLLECTOR OF C. EX., CHANDIGARH [1997 (2) TMI 125 - SUPREME COURT]. Relevant portions of the Hon’ble Apex Court’s Order in holding the classification under 4016 of the CTH. 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 goods merit classification under Heading 4016 9990. This Tribunal in the case of COMMISSIONER OF CUSTOMS, CHENNAI VERSUS M/S. NIRMALA AGENCIES [2016 (6) TMI 863 - CESTAT CHENNAI] had also considered the impugned question of classification of Rice Milling Rubber Roller, Paddy De-husking Rubber Roller, wherein the identical question of law is concerned with and following the decision of the Hon’ble Apex Court, the Tribunal in the aforesaid decision held that the said goods were appropriately classifiable under 4016 9990. There are no infirmity in the order of the learned Commissioner (Appeals) - appeal dismissed. Issues Involved:1. Classification of 'Rice Mill Rubber Rollers'2. Demand of Differential Duty and InterestSummary: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.