JUDGMENT
Jyoti Balasundaram, Member (J)
1. Duty demand of Rs. 1,33,450/- has been confirmed on plam oil machinery manufactured by the applicants herein and penalty of Rs. 4,000/- has been imposed upon them.
2. The duty demand arises as a result of classification of the goods under Chapter 84.79 which covers “machines and mechanical appliances having individual functions not specified or included elsewhere in the Chapter” rejecting the applicants’ claim for classification under heading 84.37 which covers “machines for cleaning, sorting or grading seed, grain or dried leguminous vegetables, machinery used in milling industries or for the working of cereals or dried leguminous vegetables other than farm type machinery.” It is the contention of the applicants that the goods are covered under heading 84.37 for the reasons that they are used for sorting and grading of plam fruit. Benefit of Notification No. 56/95 was also claimed by the applicants.
3. On hearing the ld. counsel and the ld. departmental representative, we find that prima facie classification under heading 84.37 may not be appropriate since the goods in question cannot be considered prima facie as for cleaning, sorting of grading seed, grain of dried leguminous vegetables machinery or used in milling industries. The machines in question are specifically used for oil extraction. Therefore, there is no prima facie force in the submission regarding classification under heading 84.37. The benefit of Notification claimed by the applications is also not available prima facie since Sr.No. 24 under which the claim is made applies only to goods falling under Chapter 84.37. In the light of the above and in the absence of plea on the financial hardship, we direct pre-deposit of the entire duty amount within a period of four weeks from today. On such deposit, the pre-deposit of penalty shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and rejection of appeal without prior notice.
4. Compliance to be reported on 6.11.01.
(Dictated in Court)