2001 (5) TMI 266 - AT - Central Excise

Tribunal classifies goods as Flour Mill Machinery parts, not Mill Stones

The Tribunal upheld the Commissioner (Appeals)'s classification of goods under Chapter 8437 as parts of Flour Mill Machinery rather than under Chapter ... Classification Issues: Classification of goods under Chapter 8437 as parts of Flour Mill Machinery or under Chapter 6801 as Mills Stones, Grind Stones, Grinding Wheels.Analysis:1. The appeal was filed by the Revenue against the order of the Commissioner (Appeals) regarding the classification of goods. The Commissioner (Appeals) classified the product after examining descriptions, functions, and relevant photographs. The issue was whether the Entity should be classified under Chapter 8437 or Chapter 6801. The Assistant Collector initially classified the goods under Chapter 6801. The Commissioner (Appeals) disagreed with the Assistant Collector's finding regarding the presence of a 'Steel Ring affixed to the stones' and concluded that the 'steel ring' was like a plate and not a 'frame work'. The Commissioner (Appeals) relied on the deposition of two trade experts who admitted that the rings and plates could be considered a 'frame work'. Additionally, the Commissioner (Appeals) referred to a clarification by CBEC and HSN Notes under Heading 68 to classify the goods under Chapter 84, as they were used in the milling industry for milling grain.2. The Revenue filed an application to introduce a 'technical report' as additional evidence. The matter was adjourned for this purpose, and the technical report was submitted. Cross objections were filed by the respondent regarding this application. During the hearing, the SDR did not emphasize the technical report and focused on the HSN Notes under Heading 6801. The HSN Notes mentioned that grinding stones without frame works are classified under Heading 8205 if hand or pedal operated or under Chapter 84 or 85 if power operated. The witnesses for the Revenue, who were not re-examined before the original authority, admitted during the personal hearing that the items attached to the stones could be considered 'frame work'.3. The Tribunal considered the specific deposition of the witnesses for Revenue and the HSN Notes under Heading 6801. It was concluded that the items attached to the stones constituted 'frame work'. Therefore, based on the HSN Notes under Heading 68.01, the goods, being part of power-operated machines, should be classified under Heading 8437. The Tribunal agreed with the Commissioner (Appeals) and dismissed the appeal of the Revenue.