ORDER
1. In this appeal, which has been preferred against the impugned order in appeal, the issue relates to the classification of goods known as Moisture Testing Machines. The appellants are engaged in the manufacture of these machines and has sought classification under Chapter heading 8437.00 of the CETA chargeable to nil rate of duty whereas the Revenue has propounded classification under heading 9031.00.
2. The adjudicating authority accepted the classification as put forth by the appellants vide order in original dated 14.5.02 but the Commissioner (Appeals) has reversed that order through the impugned order by accepting Revenue’s classification under heading 9031 of the CETA.
3. The learned Counsel has contended that the goods inter-alia, Moisture Testing Machines manufactured by the appellants are solely meant for testing moisture contents of food grains like wheat, rice, paddy, maize, etc. and are used mainly in the milling industry and as such, merit classification under chapter heading 8437.00 of CETA read with HSN Notes.
4. On the other hand, the learned SDR has reiterated the correctness of the impugned order.
5. We have heard both the sides and gone through the record. The Chapter heading/sub-heading 8437.00 and 9031.00 of the CETA along with the HSN Explanatory notes are reproduced below:-
“A) 8437:- Machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables; machinery used in milling industry or for the working of cereals or dried leguminous vegetables other than farm type machinery:
HSN Explanatory Note to chapter heading 8437.10 reads as “Machineries for cleaning, sorting or grading seed or dried leguminous seed for planting”.
Explanatory Note 4: Special machines for selecting and grading seeds for planting. The heading also covers machinery used in the milling industry for cleaning, sorting or grading seed prior to milling.
B) 9031.00 Measuring or checking instruments appliances and Machines, not elsewhere specified or included elsewhere in the Chapter.
6. As per HSN to this chapter heading, the following instruments are listed: Machines for balancing mechanical parts, Test benches, Profile Projectors, other optical instruments and appliances, other instruments, appliances and machines, arts and accessories.”
7. It remains undisputed that the Moisture testing machines in question, are used solely for the purpose of determining moisture in wheat, paddy, grains/Cereals, pulses, etc. These machines are not used for cleaning sorting or grading grain or dried leguminous vegetables. The grading and sorting of the grains/cereals is done later on and not through these machines. The argument of the learned Counsel that these machines are used solely in the milling industry also cannot be accepted as there is ample evidence on record to prove that these machines are also used by FCI, MARKFED, HAFED who have even furnished certificates regarding the use of these machines for determining the moisture contents in the grains. Similarly, various government agencies like karnataka Seeds Corporation, University of Agriculture Sciences, Bangalore have also furnished certificates that they are using these machines exclusively for determining the moisture contents in the seeds/grains. All these agencies do not fall within the definition of milling industry. These are rather non-milling agencies who are using these machines for ascertaining the moisture contents in the seeds/grains. Therefore, these machines do not fall within the ambit of Chapter heading 8437.00 even if read with the HSN Explanatory Notes to this Chapter reproduced above.
8. On the other hand, keeping in view the function of these machines, which is to ascertain the moisture contents in the grans/seeds, it can be safely and legally concluded that these are checking/measuring instruments falling under Chapter heading 9031.00 of the CETA. The argument of the Counsel that this is a general Chapter heading and as such, the specific heading 8437 of CETA has to prevail over it for classifying the machines in question, cannot be accepted as the machines do not at all fall within the four corners of Chapter heading 8437, as discussed above. These machines are squarely covered by Chapter heading 9331.00 and as such, deserves classification only under it.
9. In view of the discussion made above, we are fully in agreement with the view taken by the commissioner (Appeals) and we uphold the impugned order passed by him regarding classification of the goods in question, detailed above. Consequently, the appeal of the appellants, being without merits, is dismissed.