2017 (8) TMI 503

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....4.2003. The goods were classified under CTH 84368090 and duty @ 25% BCD + nil CVD + 4% SAD amounting to Rs. 3,82,340/- was paid on 24.4.2003. Department took the view that the impugned goods are for industrial use and hence excluded from CTH 8436 vide HSN notes and that they instead merit classification under CTH 84389090. In adjudication proceedings, the classification of goods under CTH 84389090 was ordered and differential duty liability of Rs. 2,65,090/- with interest thereon was also confirmed. The appeal thereof was rejected by the Commissioner (Appeals) vide impugned order dt.29.12.2008. Hence the appellants are before this forum. 2. On 07.08.2017 when the matter came up for hearing, on behalf of appellant, Ld. Advocate Shri Derri....

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....keeping machinery; poultry incubator, and brooders :   - 8436 21 00 -- Poultry incubators and brooders   u 20%  - 8436 29 00 -- Other u 20% - 8436 80 - Other machinery:        8436 80 10 --- Germination plant fitted with mechanical and thermal equipment u 20% - 8436 80 90 --- Other u 20% -  - Parts:    8436 91 00 -- Of poultry-keeping machinery or poultry incubators and brooders kg. 20%  - 8436 99 00 -- Other kg. 20% -     Tariff Item Description of goods Unit Rate of duty Standard Preferential Areas 8438 Machinery, not specified or ....

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....chine   u 20% - 8438 80 90 --- Other u 20% - 8438 90 - Parts :        8438 90 10 --- Of sugar manufacturing machinery kg. 20% - 8438 90 90 --- Of other machinery kg. 20% -   4.3 No doubt, the impugned items are parts of machinery for manufacturing shrimp feed. At the first glance, it may appear that they would fit into the CTH 8436 as since that entry covers "other machinery for preparing animal feeding stuffs". Nonetheless, the tariff entries have to be read in consonance with the Section and Chapter Notes not only of the Schedule to the Customs Tariff Act but also the notes laid down in the Harmonious System of Nomenclature (HSN) based....

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.... 23 (SC) laid down that Explanatory Notes to HSN not only has persuasive value but entitled to the greater consideration in classifying the goods under Central Excise & Customs Tariff. The relevant portion of the judgment is reproduced as under : "[Order]. - These civil appeals arise on orders of the Customs, Excise and Gold (Control) Appellate Tribunal and they have to be allowed and the matters remanded for re-consideration by that Tribunal because, principally, the Tribunal has declined to place reliance upon the Explanatory Notes in the H.S.N. stating that, at best, these have only persuasive value. 2. This Court in Collector of Central Excise, Shillong v. Wood Craft Products Limited [1995 (77) E.L.T. 23] has said : We are of t....