2002 (3) TMI 527 - AT - Central Excise

Summary

Issues: Classification of hand pallet trucks under different headings - 84.27, 84.28, and 87.16

In this judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand is the classification of goods, specifically hand pallet trucks, manufactured by the appellant. The goods consist of two parallel prongs attached to a frame with wheels, designed to fit into pallet slots for carrying loads in factories and warehouses. The manufacturer claimed classification under Heading 84.28, while the department argued for classification under Heading 87.16. The Commissioner (Appeals) upheld the department's classification, leading to this appeal.

The appellant's representative, in addition to pressing for classification under Heading 84.28, also proposed an alternative classification under Heading 84.27. The Assistant Commissioner based the classification on the description in the Harmonised System of Nomenclature notes under heading 87.16, focusing on non-mechanically propelled vehicles for transporting goods. The Commissioner (Appeals) rejected the manufacturer's classification under Heading 84.28, citing Chapter 84's focus on mechanically operated machinery for lifting and handling, which does not cover hand-operated equipment.

The Tribunal analyzed the classifications under Heading 84.27, 84.28, and 87.16 in detail. Heading 84.27 includes works trucks with lifting equipment, which fits the description of the hand pallet trucks in question. The Tribunal noted that the goods are not self-propelled but are manually propelled or towed, falling under the definition of trucks. As for Heading 84.28, it deals with machinery for lifting and handling, which was deemed less appropriate for the hand pallet trucks. Ultimately, the Tribunal found Heading 84.27 to be the most suitable classification for the goods.

Despite the appellant not initially claiming classification under Heading 84.27, the Tribunal considered it appropriate after evaluating all aspects. Following the Supreme Court's judgment in Hindustan Polymers Co. Ltd. v. CCE, the Tribunal rejected the department's classification under Heading 87.16. Consequently, the appeal was allowed, and the impugned order was set aside, favoring the classification of the hand pallet trucks under Heading 84.27.