Classification of rice parboiling machinery-reg

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....ice Mill Machinery Manufacturers Association that the practice so far followed by the department was not to charge excise duty for many years but suddenly it has been sought to charge duty on these machines by proposing classification under heading 8419. The matter has been examined by the Board. 2. Paddy processing plant consists of sections with functions like parboiling, drying, rice milling and polishing. Parboiling plants and drier plants are used for steaming and drying paddy and also for reducing the moisture content in the paddy. The processed paddy is then sent to subsequent sections where husking, hauling, milling and polishing are undertaken. Briefly, parboiling process involves three stages, namely, pre-steaming, soaking and st....

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....fore it has been viewed that parboiling and drier plant are not essential and integral part of rice mill and therefore it would merit classification under heading 8419. It has also been opened that machinery performing specific functions like steaming or drying are specifically covered by heading 8419. Further, reference has also been made to Chapter Note 2 to Chapter 84 to justify the classification under heading 8419. 4.1 On examination of the issue, the Board observes that the General rules for interpretation of Central Excise Tariff provide that "for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise re....

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.... heading 8486, as the case may be, and not under the headings 8425 to 8480. Heading 8419 does not, however, cover : (a) germination plant, incubators or brooders (heading 8436); (b) grain dampening machines (heading 8437); (c) .... (d) ... (e) ....." 4.2 Parboiling machinery, drier plant and rice mill in conjunction form the paddy processing. Thus such a plant can be considered as composite machines fitted together to perform the function of rice milling which is the principal function of such a combination. Thus in terms of the Section Note 3 & 4 even if one of the component/ machinery is performing complementary functions, the classification of such component/ machinery will be governed by the principal function being performed, an....