TaxTMI 
TaxTMI 
2019 (1) TMI 53
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....er Chapter Heading No. 8428 of Central Excise Tariff Act, 1985. 2. The facts of the case are that the appellants are manufacturer of 'Rice Milling Machinery' along with belt conveyors and Bucket Elevator and various other parts of Rice Mills Machinery. Revenue is of the view that as the appellants are manufacturing conveyors and elevators which are more appropriately classifiable under Chapter Heading No.8428 of Central Excise Tariff Act, 1985, therefore, they cannot be classified under Chapter Heading No.8437 of Central Excise Tariff Act, 1985 as machinery using in milling. In these set of facts the proceedings were initiated against the appellant to classify the same under Chapter Heading No.8428 of Central Excise Tariff Act, 1985 and th....
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....r u 12% 8428 20 20 Pneumatic elevators u 12.5% Other continuous-action elevators and conveyors, for goods or materials: 8428 31 00 Specially 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 OR GRADING SEED, GRAIN OR DRIED LEGUMINOUS VEGETABLES; MACHINERY USED IN THE MILLING INDUSTRY OR FOR THE WORKING OF CEREALS OR DRIED....
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....e 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 appellants are de....
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....o 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 sustainable. Admittedl....
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....t 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 Equipments Pvt. Ltd.....