2015 (2) TMI 1058

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....n feeder), paddy cleaner, paddy husker, paddy separator etc. The dispute in this case is about rice bucket elevator and rice conveyor . While the appellant were classifying these goods under heading 8437 as machinery used in Milling Industry where the tariff rate is nil, according to the department these goods are classifiable under heading 8428, as other lifting, handling, loading or unloading machinery (for example Lifts, escalators, conveyors, Teleferice) . On this basis, by the impugned order, the Commissioner, classifying the goods, in question, under heading 8428 has confirmed the duty demand of Rs. 4,95,16,617/- against the appellant company along with interest thereon under section 11AB and beside this, has imposed penalty of equal ....

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.... finding that the machines, in question, can be utilized to transport not only rice but anything else, is factually incorrect, as the St. Lango Institute of Engineering and Technology has specifically opined that these machines are only meant for rice milling industry, that college of engineering, Pune vide its letter dated 22.03.2013 in respect of similar goods being manufactured by M/s Eminence Equipment Pvt Ltd., Pune has also opined that grain discharger and Grain feeder are meant handling food grains, and that they are not suitable to handling material like cement, lime, coal, sand etc., and that in view of the above, the impugned order classifying the goods, in question, under heading 8428 and confirming duty demand and imposing penal....

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....rame. However, having given this finding, the Commissioner has gone on to say that these items are not essential part of the machinery in absence of which the whole machinery would come to stand still and that the same can be utilized to transport not only rice but anything else also. However, it is seen that the appellant have produced opinion from technical experts - College of Engineering, Pune and St. Lango Institute of Engineering and Technology wherein it has been opined that these machines are specially designed for handling and processing of food grains and that as per the characteristics of the raw material used, component and fabrication techniques used for manufacture of grain dischargers and grain feeders, these are not fit for ....