Agriculture machinery

2013 PTD 691 CUSTOMS-APPELLATE-TRIBUNAL-KARACHI Judicial Precedent

S.19S. R. O. 575(1)/2006 dated 5-6-2005PT'C Heading 8438.6000General power to exempt from customs dutiesAgriculture machineryClassification of PTC Heading

First Appellate Authority set aside the order-in-original and ordered for release of machinery imported under PCT Heading 8438.6000 on the ground that machinery fell under Cl. (13)(1) of Serial No.1 of the S.R.O. 575(1)/2006 dated 5-6-2006; that since the functions performed by the machinery imported were similar to the functions of machinery of PCT Heading 8438.6000 (Machinery for preparation of Fruits, Nuts or Vegetables), the same was correctly classifiable under such heading; and classification (PCT Heading 8438.8090) determined by the adjudicating officer was set aside

Revenue contended that importer's declaration was "Ethinic Snack Frying System "; that by nomenclature of declared description was not covered under PCT Heading 8436.6000; and that by considering the provisions of Rr. 3(3), 3(c) & 4 of the general rules for interpretation of harmonized system the imported Snack Frying System was correctly classifiable under PCT Heading 8438.8090

Validity

Catalogue of machinery showed that it was an all-in-one type of advance machine which performs multiple functions such as shelling (in case of nuts), peeling (in case of pulses), dough making, batter mixing, frying by means of beat wave frying system, seasoning, filling and packing of such agricultural products as peanuts, green peas, almonds, pulses

Products were agro-products and machinery imported was meant for performing various processes on them from production of namkeen snacks

Evidence on record categorically established that importer was in the business of production of namkeen food items and that 98% of such products were being exported

Machinery fell under Cl.(13)(1) of Serial No.1 of the S.R.O. 575(1)/2006 dated 5-6-2006 and the benefit of such notification was admissible to the same

Since functions performed by the machinery imported were similar to the functions of machinery of PCT Heading 8438.6000 (Machinery for preparation of Fruits, Nuts or Vegetables) through the change of PCT Headings and claim of the same thereon were of no use nor there was any violation committed by the importer nor made any ntisdeclaration at the time of claiming the exemption but the same was in accordance with law

No illegality or infirmity in the order passed by the First Appellate Authority having been found same was up-held by the Appellate Tribunal

Departmental appeal being devoid of merits was rejected.