B.G. Shirke Construction Technology Pvt. Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai)
Appellant manufactures silos for storage of food grains. Custom made silos based on purchase orders placed by customers. It classified under chapter heading 84379090. Revenue contended it is a “prefabricated building” falling under chapter heading 94060099. Show cause notices were issued and demands of over Rs.20 crores (including penalty) confirmed.
Revenue has contended that, the appellants were clearing the “Silo” simplicitor, which has been specifically classified under Chapter Heading 9406 as pre fabricated building. We do not find any support to the said argument from the tariff entries. The tariff entry, 9406 is in respect of “pre-fabricated building”, and the term pre-fabricated building has been defined by the Chapter Note 4. Chapter Note 4 was not amended as result of introduction of Eight Digit Classification Code. Further it is to be noted that the term “pre fabricated building” has been defined using the word “mean”, and as per the principles of interpretation, a definition using the word mean is restrictive in nature and limited to what has been stated therein. The HSN Explanatory Notes to chapter heading 9406 reads as under:
“This heading covers, “prefabricated buildings”, also known as “industrialized buildings” of all materials. These buildings, which can be designed for a variety of uses, such as housing, worksite, accommodation, offices, schools, shops sheds, garages and greenhouses, are generally presented in the form of:
