2002 (5) TMI 354 - AT - Central Excise

Summary

Issues:
Classification of hoses of plastic under Tariff Heading 8424.00 or 3917.00 for duty exemption.

Analysis:
The appeal concerned the classification of plastic hoses manufactured by the respondent. The manufacturer claimed classification under Heading 8424.00 as part of mechanical appliances used in agriculture or horticulture, seeking exemption under Notification 46/94. The Asst. Commissioner, however, classified the goods under Heading 3917.00 as tubes and pipes of plastic, denying the exemption. The Commissioner (Appeals) later accepted the manufacturer's contention and classified the goods under Heading 8424.00, leading to the current appeal by the Commissioner.

The Tribunal rejected the argument that the hoses should be considered parts of general use under Note 1(g) of Section XVI, emphasizing that tubes and pipes of plastic do not fall under this classification. The respondent contended that the hoses should be classified under Heading 35.70 based on specific dimensions for agricultural spares. The Tribunal referenced previous decisions and explained that tubes of plastic intended for use as machine components are classifiable as such, supporting their classification under Heading 3917.00.

Heading 39.17 covers tubes, pipes, hoses, and fittings of plastics, with Note 8 clarifying the types of products included. The Tribunal highlighted that products for conveying liquids or gases are appropriately classified under Heading 39.17 rather than as parts of machines. They reasoned that classifying tubes and pipes based on end-use could lead to impractical consequences due to their wide applications across various industries.

The Tribunal found no support in the tariff or explanatory notes for the respondent's classification argument. They emphasized that items with multiple applications are classified based on the most appropriate heading, not solely as parts of specific appliances. Referring to previous Tribunal decisions, the Tribunal distinguished the current case from past rulings and concluded that the hoses in question were suitable for conveying liquids, warranting classification under Heading 3917.00.

In conclusion, the Tribunal allowed the appeal, setting aside the Commissioner (Appeals) order and restoring the Asst. Commissioner's decision to classify the plastic hoses under Heading 3917.00.