Case Law Details
Autotex Private Limited Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that the Chick drinker, Auto feeder, and Poultry cage are rightly classifiable under CETH 84361000 and not under CETH 39269099.
Facts- The appellant is engaged in the manufacture of excisable goods namely, Auto feeder, Chick Drinker and Poultry made of plastics.
On the basis of intelligence gathered that appellant is manufacturing and clearing the goods, Auto feeder, Chick Drinker and Poultry cage without paying duty by adopting incorrect classification, investigation was initiated. It was noticed that appellants were clearing the good , namely, (1) Auto feeder (2) Chick Drinker and 3) Poultry cage under CTH 84361000 as poultry keeping machinery and had not charged any excise duty in the invoices, mentioning that the goods are ‘exempted vide notification No.111/88 dt. 01.09.1988 as amended and CSN No.8436 Nil by Tariff”. Along with such goods they also cleared various products like ‘Hose PVC, ‘Flexible Blue’, Tee Joint Nipple’ etc. without payment of duty classifying them also under CTH 84361000. The said chapter heading 8436 of Central Excise Tariff Act, 1985 is for “Other agricultural, horticultural, forestry, poultry keeping or bee keeping machinery including germination plant fitted with mechanical or thermal equipments; poultry incubators and brooders.” It appeared to the department that the products namely Chick drinker, Auto feeder and Poultry cage have no mechanical function and being made out of plastic is not classifiable under 8436 and but merits classification under 3926 (Auto feeder, Chick drinker) and 3923 (Poultry cage) of CETA 1985. The miscellaneous parts to be classified along with.
Show cause notice was issued for different periods proposing to redetermine the classification of the goods and also to demand duty along with interest and to impose penalties. After due process of law, the original authority vide impugned Order-in-Original dated 31.10.2017 redetermined the classification of the goods under 3926 and confirmed the duty along with interest and imposed penalties.
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