TaxTMI 
TaxTMI 
2018 (12) TMI 852
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.... Rice Milling Machinery and Parts thereof like "Rice Bucket Elevator (grain discharger), rice conveyor (grain feeder), paddy cleaner, paddy husker, paddy separator etc. The dispute in this case is about "rice bucket elevator" and "rice conveyor" whereas the appellants were classifying these goods under heading No. 8437 as "machinery used in Milling Industry" where the tariff rate is nil, according to the department these goods are classifiable under heading No. 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 No. 8428 has confirmed the demand against the appellant....
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....u 12% 8428 20 19 Other u 12% 8428 20 20 Pneumatic elevators u 12% Other continuous-action elevators and conveyors, for Goods or materials: 8428 31 00 Specifically designed for underground use u 12% 8428 32 00 Other, bucket type u 12% 8428 33 00 Other, belt type u 12% 8428 39 00 Other u 12% 8428 40 00 Escalators and moving walkways u 12% 8428 60 00 Teleferics, chair-lifts, ski-raglines, traction Mechanisms for funiculars u 12% 8428 90 Other machinery: 8428 90 10 For Coal handling u 12% 8437 Machines for cleaning, sorting and grading seed, grain Or dried leguminous vegetables machinery used in the Milling industry or for th....
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....being that machine which performs the principal function. 4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. 5. For the purposes of these notes, the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85." On going through the above provisions, we find that the conveyors and elevators manufactured by the ....
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....he section note to the Central Excise Tariff is clear on the aspect wherein it has been clarified that the said items are to be classified under the main machine. Therefore, the department cannot place reliance upon the explanatory notes to change the classification of the said items. 7. We further take a note of the fact that in the case of Commissioner of Central Excise, Kanpur vs. Rationale Iron & Steel Co. (supra), this Tribunal has categorically observed that explanatory notes have no force of law and they are only for guidance whereas the findings of the Ld. Commissioner (Appeals) is on the basis of Central Excise Tariff Act, 1985 enacted by Indian Parliament. Therefore, it was held that the ground raised by the Revenue is not sustai....
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....on'ble Apex Court in the case of G. S. Auto International Ltd. (supra) wherein the Hon'ble Apex Court observed as if the items specifically made for specific machine would be classifiable as part of the said machine and not under the general heading. Admittedly, in the case in hand, the conveyors and elevators are for specific use of rice milling industry and nowhere else, in that circumstances, the same merits classification as per the rice milling machinery under tariff heading No. 8437. 9. The Ld. AR heavily relied on the decision of Eminence Equipments Pvt. Ltd. (supra) to say that conveyors and elevators used for rice mills is to be classified under chapter heading No. 8428. We have gone through the facts in the case of Eminence Equi....