Classification of emery millstones with cast iron framework under Chapter 84 held proper, securing tariff exemption.

Emery millstones fitted with cast iron framework were held outside sub-heading 6801.90 because Chapter 68 covers millstones and similar goods without such framework. On the factual finding that the goods were intended for power operation in flour mills, and in light of the HSN Notes indicating that stones with framework fall outside Chapter 68, the goods were classifiable under Chapter 84 as parts of flour mill machinery. As a result, the Chapter 68 classification was unsustainable and exemption under Notification No. 111/88, as amended by Notification No. 141/88, was available.

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Issues: Whether emery millstones fitted with cast iron frame work were classifiable under sub-heading 6801.90 of the Central Excise Tariff Act, 1985 or under Chapter 84 as parts of flour mill machinery, and whether they were entitled to exemption under Notification No. 111/88 as amended by Notification No. 141/88.

Analysis: Sub-heading 68.01 applies only to millstones, grindstones and similar goods without frame works. The factual finding recorded was that the emery millstones were fitted with cast iron frame work. On that basis, they fell outside the scope of sub-heading 6801.90. The HSN Explanatory Notes, though of persuasive value, also supported the view that stones with frame works are not to be treated under Chapter 68 and would fall under Chapter 84 or 85 depending on their mode of operation. The material showed that the goods were meant for power operation and for use in flour mills, and the departmental finding that they were parts of flour mill machinery further supported classification under Chapter 84.

Conclusion: The classification under Chapter 68 was not sustainable, and the goods were rightly classifiable under Chapter 84 as parts of flour mill machinery. The exemption under Notification No. 111/88 as amended by Notification No. 141/88 was therefore available.

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