2015 (2) TMI 338

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....hat the Appellant imported "Forged Penion" and filed Bill of Entry No. 775227 dated 21.06.07 through their CHA M/s Damani Shipping Pvt. Ltd. In the Bill of Entry the Appellant classified the goods under CTH 84831010 wherein the rate of duty applicable is @7.5% + 8% + 2%+1%+2%+1%+4%. The item covered the said heading is "Crank Shafts for Sewing Machines". The Bill of Entry was facilitated under Risk Management System (RMS) for the clearance without the procedure of assessment and examination. On selection of the said Bill of Entry for post clearance audit (PCA), it was observed that the goods imported were not "Crank Shaft for Sewing Machine", therefore it does not appear to be covered under heading 84831010. On enquiry of PCA vide it's letter dated 11.07.2007, the Appellant submitted that the correct classification is 84831099 and duty payable is 7.5% +16% +2%+1%+4%. This heading is for 'Transmission Shafts and Cranks' under 'other' category. According to the PCA the goods merit classification under CTH 84839010 as 'Parts of Sugar manufacturing machinery' and duty payable is 7.5% +16% +2%+1%+4%. The Appellant paid the differential duty amounting to Rs. 5....

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....onally after seizure on execution of provisional release Bond/Bank guarantee, therefore as per the settled legal position, in such situation of the redemption fine ought not to have been imposed. In support of his submission, he placed reliance on the following case laws: [1998 (101) ELT 549 (SC)] Northern Plastic Ltd. Vs. Collector of Customs & Central Excise [2004 (163) ELT 359 (Tri-Kolkata)] Jay Kay Exports & Industries vs. Commissioner of cus. (Port), Kolkata [2001 (135) ELT 1425 (Tri-Del)] Pawan Goel Vs. Commissioner of Customs, New Delhi [1996 (87) ELT 115 (Tri)] Straw Products Ltd. vs. Collector of Central Excise, Indore [2004 (174) ELT 171 (Tri-Del)] Shree Ganesh International vs. Commissioner of C.Ex, Jaipur [2009 (235) ELT 623 (Tri-LB)] Shiv Kripa Ispat Pvt. Ltd. Vs. Commissioner of C. Ex & Cus., Nasik Ld. Counsel submits that the Appellant is not disputing differential duty demand and interest, which was admittedly paid. However, he prays for dropping the penalty and redemption fine. As regards correct classification he submits that the Appellant admitted that the goods in question is not classifiable under CTH 84831010 which was claimed by them in their Bill of ....

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....#39;Cranks and Transmission Shafts' or 8439010 as 'Part of Sugar manufacturing machinery'. There is no dispute between the Appellant and Revenue that the goods in question is of a class of Cranks and Transmission Shaft. However the revenue's contention is that since the goods is undisputedly for use in the Sugar manufacturing machinery, it merits classification under CTH 84389010. To ascertain the legal position of the issue, we have gone through the General Rules for the Interpretation of Custom Tariff and Section XVI notes and relevant Custom Tariff Entries, which are reproduced below" The First Schedule-Import Tariff (See Section 2)General Rules for the Interpretation of this Schedule Classification of goods in this Schedule shall be governed by the following principle: 1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Ntoes and, provided Such headings or Notes do not otherwise require, according to the following provisions; Custom Tariff of India 2007-08Section XVIMachinery and ....

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....;     8438 10 - Bakery machinery and machinery for the manufacture of macaroni, spaghetti or similar products:       8438 10 10 --- Bakery machinery u 7.5% - 8438 90 - Parts:       8438 90 10 --- Of sugar manufacturing machinery kg. 7.5% -   From the reading of the above provisions, it is clear that as per the principle laid down in general interpretative rules, for the legal purpose, the classification of the goods shall be determined according to the terms of the headings and any relative Section or Chapter Notes. The rival tariff entries falls under section XVI of the Custom Tariff Act. In terms of Note 2 of said section, if any specific tariff entry under Chapter 84 & 85 is provided for any goods, it will merit classification in the said specific tariff entry, even though it is part of any goods and if there is no specific entry provided, then it will merit classification under the Chapter wherein the main machinery, equipment etc falls. In the present case the Transmission Shaft (Forged Pinion) has a place under specific tariff entry under Chapter heading 8483 and Forged Pinion covered under the entry &#....