2002 (5) TMI 424 - AT - Central Excise

Summary

Issues: Classification of "coal tub body" under Central Excise Ch. sub-heading 8607 versus 8609 and consequent demand of duty.

Analysis:
1. The lower authorities classified the goods under sub-heading 8607, considering them as parts of rolling stock, based on HSN Explanatory Notes. The impugned order held that the items are parts of rolling stock.

2. The appellants argued that the coal tub body is specifically manufactured for coal mining, with a maximum carrying capacity of 1.084 M.T., and should be classified under sub-heading 8609 as containers specially designed for transport, as per HSN General Notes. They referenced specific HSN Notes to support their classification argument, highlighting that open containers for bulk transport of coal are covered under 8609.

3. The appellants also pointed out that a previous order by the Commissioner of Central Excise, Indore, classified the goods under sub-heading 8609, and cited a CEGAT order in a different case classifying coal tubs under Chapter Heading 8606. They argued that the Central Excise Authorities should have followed the Commissioner's classification.

4. The Department argued that the coal tubs are mounted on locomotives moving on rails in mines, making classification under 8607 more appropriate, as it covers parts of railway or tramway locomotives or rolling stock.

5. Chapter 86 of the Central Excise Tariff covers tramway locomotives, rolling stock, and parts thereof, along with track fixtures and fittings. The HSN Notes clarify the classification of containers specially designed for transport under sub-heading 8609.

6. The Tribunal clarified that the previous case involving coal tub classification under 8606 was not relevant to the present dispute, as it focused on exemptions rather than classification. The current appeals were to be decided based on sub-headings 8607 and 8609 only.

7. The Tribunal found that the correct classification of the coal tub body is under Tariff sub-heading 8609, considering the capacity, design, and specific mention of containers for bulk transport of coal under this sub-heading. The previous classification by the Commissioner of Central Excise, Indore, also supported this finding.

8. Consequently, the appeals were allowed in favor of the appellant, granting consequential relief due to the determination that the coal tub body should be classified under Tariff sub-heading 8609.