2002 (3) TMI 332 - AT - Customs

Summary

Issues: Classification of imported "shower cabins"

Issue 1: Classification under Heading No. 94.06 or sub-Heading 7615.20
In the appeals, the central issue is whether the "shower cabins" imported by a company are to be classified as 'pre-fabricated building' under Heading No. 94.06 of the Customs Tariff Act, as upheld by the Commissioner (Appeals), or under sub-Heading 7615.20 of the Tariff, as claimed by the Revenue.

Analysis:
The learned DR argued that Heading 94.06 applies to "Pre-fabricated buildings," which are finished in the factory or assembled on-site. He referred to the Explanatory Notes of HSN, stating that pre-fabricated buildings can include various structures for housing, work sites, offices, schools, etc. The DR contended that the "Shower Cabins" in question do not meet the criteria of pre-fabricated buildings, as they are intended to enhance bathroom efficiency and are not standalone buildings. He further argued that based on the Explanatory Notes, the goods should be classified under sub-heading 7615.20 of the Tariff.

Issue 2: Interpretation of the Explanatory Notes
The Advocate for the Respondent argued that the imported goods are not sanitary wares and should be classified under Heading 94.06 as pre-fabricated structures. The Respondent mentioned that they received classification confirmation from the Customs Department and the Director General of Foreign Trade under Heading 76.15, or alternatively under Heading 76.10 as "Aluminum structures."

Analysis:
The Tribunal considered both arguments and examined the rival Headings 7615.20 and 9406.00. Note 4 to Chapter 94 defines pre-fabricated buildings as structures finished in the factory or assembled on-site for various purposes. The Tribunal found no evidence to suggest that the "shower cabins" are pre-fabricated buildings as per this definition. As the goods are designed for shower use and not as standalone buildings, they are to be fitted in a building. The Tribunal supported the Revenue's classification based on the Explanatory Notes of HSN below Heading 76.15, which includes items like baths and bidets. Therefore, the Tribunal concluded that the "Shower Cabins" are appropriately classified under sub-heading 7615.20 of the Customs Tariff Act, and both appeals by the Revenue were allowed.