Chick Drinker, Auto Feeder, Poultry Cage Classifiable under Machinery for Preparing Animal Feeding Stuffs under Customs Excise Tariff Act: CESTAT [Read Order]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), observed that the chick drinker, auto feeder, poultry cage classifiable under Machinery for preparing animal feeding stuffs under Customs Tariff Act, 1985 (CETA).

It was seen that appellant, M/s. Autotex Private Limited, was clearing the goods, namely, (1) Auto feeder (2) Chick Drinker and 3) Poultry cage under CETH 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.

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.

The only reason assigned by the department in the adjudication order for classifying the chick drinker and auto feeder under 39269099 is that the same works merely on-air locking mechanism and does not have any in built mechanism so as to classify as ‘machines’ under 84361000.

Vishal Agarwal appeared and argued for the appellant. The Counsel submitted that all the impugned goods are meant for poultry farming and is not in the nature of general goods which can be used by others. The Chapter Heading 8436 covers Agricultural, Horticultural, Forestry, Poultry, Bee-keeping machineries. The tariff prescribes ‘Nil’ rate of duty for goods falling under Chapter Heading 8436.

It was submitted that the Explanatory Notes to Central Excise Tariff Heading (CETH) 8436 covers machinery, equipment, apparatus used on farm, in forestry, market gardens, or poultry-keeping or bee-keeping farms or the like amongst the various equipment covered therein, automatic watering-troughs for cattle, horse, pigs etc. is one of the other agriculture, horticulture or forestry machinery which is covered under CETH 8436.

In Shiva Poultry Equipment case, the Tribunal held that the welded wire mesh supplied to poultry farms merit classification under 84.36 as poultry keeping machinery.

A Two-Member Bench of the Tribunal comprising CS Sulekha Beevi, Judicial Member and M Ajit Kumar, Technical Member observed that “We hold that the impugned goods merit classification under CETH 84361000, as adopted by the appellant. The duty demand, interest and penalty therefore cannot sustain and requires to be set aside, which we hereby do.”

To Read the full text of the Order CLICK HERE

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