M/S Hmt Ltd vs Commnr. Central Excise & ...

The Supreme Court upheld the classification of machinery under the Central Excise Tariff Act, 1985, specifically under Section 11-A of the Central Excise Act, 1944, confirming the demand of Rs.14,37,805/- for misclassified goods. The Court ruled that the machines in question, used for pasteurizing and chilling, were correctly classified under Chapter headings 8419.10 and 8413.19, as they operate on the principle of heat exchange and are excluded from Chapter heading 84.34. The penalty imposed was set aside, affirming the lower court's decision regarding the classification but maintaining the demand for duty.