1997(07)LCX0232

IN THE CEGAT, SOUTH ZONAL BENCH, MADRAS

S/Shri V.P. Gulati, Vice President and T.P. Nambiar, Member (J)

COLLECTOR OF CUSTOMS, MADRAS

Versus

JAYAKRISHNA FLOUR MILLS (P) LTD.

Order No. 1981/97, dated 30-7-1997 in Appeal No. C/1166/89-B

Advocated By : Shri R. Victor Thyagaraj, SDR, for the Appellant.

None, for the Respondent.

[Order per : V.P. Gulati, Vice President]. - The issue in the appeal relates to the classification of the air filters used in the flour milling plant. The learned lower authority has held the goods to be assessable under Heading 98.06 while the revenue seeks the assessment of the same under 8421.39, denying the benefit of Notification 69/87 as allowed by the learned lower authority.

2. The learned SDR for the department has pleaded that the air filters for flour milling machinery are excluded from the cover of the main machinery falling under 8437. He has pleaded, therefore, the benefit of the lower assessment under 9406 could not have been allowed.

3. The respondents are absent despite notice.

4. We have considered the pleas made by the learned SDR and also perused the order of the learned lower appellate authority. The learned lower authority has held as under in his order :

In view of the explanatory note on page 1221, the impugned goods are classifiable under 8421.39 as desired by the lower authority. There is no exclusion of the item falling under Heading 8421 from the Heading 9806. The items falling under 8421.39 are also covered by Customs Notification 69/87. The appellants are therefore entitled for the benefit of Customs Notification 69/87. The lower authority’s view that these cannot be considered as parts for according the benefit of Customs Notification No. 69/87 is not sustainable. The documents produced by the appellants at appeal stage clearly show that the filters are function of part of flour milling machine.

5. We observe that so far as the classification of the goods under Tariff Heading 9801 and 9806 is concerned, the same has to be governed by the scope of wordings of these Tariff Headings. Tariff Heading 9801 and 9806 are a departure from the HSN and have been specifically incorporated under the Customs Tariff to take care of the specific need which were peculiar to our country. All items of machinery which otherwise specify the parameters set out under Tariff Heading 9801 and 9806 and the Project Import Regulations get classified under this Heading. The item in question does not stand excluded from the purview of Tariff Heading 9801 and 9806 by virtue of any Chapter Note under Chapter 98 nor under the Project Import Regulations. In our view, the learned lower appellate authority has examined the issue in the correct legal perspective while allowing the appellants benefit of the lower assessment.

6. We, therefore, find no infirmity in the order of the learned lower authority and dismiss the appeal.

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Equivalent 1998 (99) ELT 128 (Tribunal)