TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 359
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....nt filed Bill of Entry (BOE) No. 9812504 dated 06.07.2015 for clearance of machines imported by the appellant. During the test check of Bill of entry (BOE), in audit, it was observed by the department that the appellant / importer imported the machines for their Areca Nut Plant declaring the Custom Tariff Heading CTH No. 84371000, for which the Counter Vailing Duty (CVD) is at the rate of 0%. However, the department opined that the said CTH is for the machines which are meant for cleaning, sorting or grading seed, grain or dried leguminous vegetables whereas the machines imported by the appellant were for being used in crumbling or processing Areca Nuts (commonly known as supari), for production of Pan Masala. As per department, the importe....
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....pondent. 3. Ld. Counsel for the appellant submitted that the adjudicating authorities below cannot revise the classification proposed in SCN nor can Commissioner (Appeals) do so specifically in absence of any appeal filed by the department against the Order-in-Original (O-I-O). The adjudicating Authority cannot travel beyond the Show Cause notice and cannot confirm classification which was neither claimed by the appellant nor proposed by the department in the SCN. 3.1 Ld. counsel further submitted that the BOE had rightly classified three of the imported machines under CTH 84371000 as these are the machines meant to crush/ sort/ crumb etc. the seeds (Areca Nuts). The explanation submitted qua functioning of these machines is as follows: ....
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.... and industries are to be classified under CTH 8479. 4.1 Ld. Departmental Representative further submitted that the literature of the machine (Crumbler) submitted by the appellant revealed that Crumbler DFZL can be used for crumbling feed pellets, as well as in flour milling, oilseed processing and biomass production industries for coarse/fine grinding. It can also be used for grinding of animal feed. In machine literature it is also claimed that in certain applications, the Crumbler can even replace a hammer mill. Thus, Crumbler DFZL-1500 is designed to be used for grinding or crushing of variety of goods and in multiple industries. Its use is not limited to a particular item / goods or industry. Thus Crumbler DFZL-1500 is a general use g....
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.... notice dated 07.09.2016 is held to be not maintainable. 7. Coming to the merits of the allegations in the first show cause notice dated 08.02.2016, we tabulate the apparent facts on record vis-à-vis the goods imported by the appellants as follows: - Sr . Description of Imported Products Classification claimed by Appellant Classification proposed in SCN dated 08.02.2016 Classification confirmed in OIO dated 01.11.2018 Classification confirmed in OIA dated 01.04.2022 1. Crumbler DFZL 1500 (Size reducer crusher machine) 84371000 84798200 84386000 84798200 2. Plainsifter MPAK 228 with accessories for grading 84371000 84798200 84336020 84798200 3. Discharge Airlock MPSJ 22/22 843....
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....d the show cause notice. Accordingly, we are of the opinion that both the adjudicating authorities has committed an error while confirming the impugned demand by travelling beyond the proposal of the show cause notice. Also the demand is confirmed solely on the basis of lack of evidence qua discharging liability of VAT by the appellant when the same was not the issue in the show cause notice. Thus, we hold that the order under challenge is liable to be set aside on this technical ground. 9. Now coming to the merits vis-à-vis the impugned tariff entries chapter heading of the CTH entry with respect to three of the machines are perused. We observe chapter heading of the tariff entries mentioned in the above table as follows: - CTH 84....
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....re. But from the literature about imported machines as produced by the appellants it is clear that three of these machines are meant for sorting/cutting, grinding etc. the seeds/grain/dried leguminous vegetables which are specifically mentioned under CTH 8437200. 11. It is an admitted fact that the appellant is the manufacture of the PanMasala and has imported the machines for cutting / grinding / sorting of Areca Nuts (Supari/seed), the raw material of the Pan Masala. From the description of the three of the machines as has been brought to be notice by the appellant it becomes apparently clear that appellant has imported machines for carrying out such functions only as are specifically mentioned under CTH 8437200. 12. From the above peru....