TaxTMI 
TaxTMI 
2019 (11) TMI 948
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....levator and conveyors etc. and classifying these goods under heading No. 8437 as "machinery used in Milling Industry" where the tariff rate is nil, but the department these goods are classifiable under heading No. 8428, as "other lifting, handling, loading or unloading machines (for example Lifts, escalators, conveyors etc."). On the basis of this, the impugned order was passed, classifying the goods under Heading No. 8428 and alongwith interest and imposed penalty under Section 11 AC of the Act. Against the said orders, the appellant are before us. 3. The Ld. Counsel for the appellant submits that the similar case came up before this Tribunal in the case of Alpsco Graintech Pvt. Ltd. and Annapurna Agronics machinery Pvt Ltd. wherein vid....
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.... Lifts: 8428 10 11 Lifts of a kind used in buildings u 12% 8428 10 19 Other 12% 8428 10 20 Skip hoists u 12% 8428 20 Pneumatic elevators and conveyors: Conveyors: 8428 20 11 Belt conveyors 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 Specially designed for underground use u 12% 8428 32 00 Other, bucket type u 12% 8428 33 00 O....
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....ppellants is that as per HSN Explanatory notes itself these machines are feeders and same is covered under explanatory notes as feeder machines designed to ensure local and even flow of grain to the crushing rollers. 7. We have also seen the Section Note 3,4,5 to Section 6 of the Central Excise Tariff Act which are expected herein below:- 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. 4. Where a machine (....
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....ation of machine which ultimately perform the function of rice milling. Thus, as per Section notes the entire machinery is classifiable under heading 8437 which is for machinery used in milling industry and it is not disputed that these elevators and conveyors being manufactured by the appellants were not used for milling industry. The Central Excise Tariff is clear with respect to this aspect that the said machines if supplied as a combination of machines would be covered under the main heading 8437, therefore, the reliance on the explanatory note to HSN is not warranted as the HSN explanatory note is not a law but are they are only guiding factor for classification when the section note to the Central Excise Tariff is clear on the aspect ....
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..... In these set of observations, the merit classification of the conveyors and elevators used in specifically designed for rice milling are classifiable under chapter heading No. 8437. We further take a note of the fact that in the case of Moped Assembly (supra) this Tribunal has observed that sheet metal components for use exclusively in rice milling industry classifiable under chapter heading No. 8437. Admittedly, in this case, these conveyors and elevators are specifically used for rice milling industry as the part of the composite machinery of rice milling, therefore, having merit classification under chapter heading No. 8437. 8. We have also gone through the decision of the Hon'ble Apex Court in the case of G. S. Auto Internati....
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.... chapter note 3, 4 and 5 of Section 16 of Central Excise Tariff Act, 1985. Therefore, on that account also the decision of the said case is not applicable in the present case. 10. Moreover, the appellants have produced various technical opinions as well as the data from Customs and Central Excise Department wherein the importer as well as exporter of elevators and conveyors used specifically designed for rice milling have been classified under heading No. 8437 of the CETA. Therefore, we hold that the decision in the case of Eminence Equipments Pvt Ltd. (supra) is not applicable to the facts of the present case." 5. In view of the above, we hold that the conveyors and elevators specifically manufactured as the part of rice ....