1997 (4) TMI 452 - AT - Central Excise

Summary

Issues: Classification of grease guns, oil cans, bench oilers, pump type oil cans, lubricating hand pump oilers, and pistol pump oilers under the Central Excise Act, 1944.

The appeal was filed by the Asstt. Collector, CCE, Ludhiana against the order passed by the Collector (Appeals), Central Excise, New Delhi, regarding the classification of various items manufactured by M/s. Rajeev Metal Industries. The dispute centered around whether the items should be classified under Chapter Heading 8224.00 or 8208.80 for grease guns, oil cans, and bench oilers, and under 8413.00 or 8208.90 for pump type oil cans, lubricating hand pump oilers, and pistol pump oilers.

M/s. Rajeev Metal Industries initially classified their products under Chapter Heading 82 but later revised their classification, splitting the products into three headings. The Asstt. Collector classified the items under Chapter Heading 82.08 and sub-headings 8208.80 and 8208.90, leading to a demand for short levy of duty. The Collector (Appeals) disagreed with this classification and directed the re-determination of certain items.

The Department argued that the items could not be classified under Chapter Heading 8424.00 for mechanical appliances as they did not project, disperse, or spray liquid or powder. They contended that the items were not mechanical appliances but rather manually operated devices for transferring fluids. They also argued against classifying pump type oil cans under Heading 84.13, which related to pumps for liquids.

The Respondents, on the other hand, maintained that the items should be classified under Chapter Heading 8424.00 as mechanical appliances for projecting liquids or powders. They highlighted the description of tools and implements made of base metal under Chapter 82 but contended that the disputed items did not fit the definition of tools under Note 1 to Chapter 82.

After considering the arguments, the Tribunal found that the items in question did not fit the description of tools under Chapter 82 and could be classified under Heading 8424.00 for mechanical appliances. They also agreed with the classification of pump type oil cans under Tariff Item 8413.00 for pumps for liquids. The Tribunal rejected the need for re-determination of the classification of parts and upheld the classification lists filed by the Respondents.

In conclusion, the Tribunal rejected the appeals and upheld the classification of the items under Headings 8424.00 and 8413.00, setting aside the direction for re-determining the classification of parts and confirming the classification under Heading 8485.90 as per the Respondents' classification lists.