2003 (4) TMI 353 - AT - Central Excise

Summary

Issues:
Classification of products under sub-heading No. 3925.99 or 3925.20 of the Central Excise Tariff Act.

Analysis:
The appeal involved the classification of products manufactured by M/s. Plasopan Engineers (India) Pvt. Ltd. under sub-heading No. 3925.99 or 3925.20 of the Central Excise Tariff Act. The Appellant argued that the un-assembled doors and windows should be classified under sub-heading 3925.20, emphasizing that the hollow PVC profiles used for assembly were specific to the products and not marketed separately. The Revenue, on the other hand, contended that the goods were intermediate products, not unassembled doors/windows, and should be classified under sub-heading 3925.99. The dispute centered on whether the products were in unassembled condition or not.

The Appellant's representative highlighted that the un-assembled doors and windows were designed as infill, door shutter frames, frames, and accessories, falling under sub-heading 3925.20, specific to doors and windows. They argued that Rule 2(a) of the Interpretative Rules supported their classification under sub-heading 3925.20, as the components were meant to be assembled on-site with simple operations. Additionally, they challenged the Revenue's interpretation of Note 11 to Chapter 39, asserting that the products did not fit under sub-heading 3925.99.

In response, the Revenue argued that the Appellants themselves initially classified the products under sub-heading 3925.99, based on invoices showing separate values for the goods. They contended that the products were not unassembled doors/windows but intermediate elements used in their manufacture, thus falling under sub-heading 3925.99. The Appellant raised concerns about the price treatment under sub-heading 3925.99, requesting the benefit of a specific provision in the Central Excise Act.

The Tribunal analyzed the submissions and noted that the goods were cleared as sections, panels, and channels, not as doors/windows in CKD condition. Despite being designed for making doors and windows, the products were considered builders' ware of plastics under Heading 39.25, ruling out classification under sub-heading 3925.20. The Tribunal agreed with the Commissioner (Appeals) that the products fell under sub-heading 3925.99, specifically under Note 11(b) to Chapter 39, as structural elements for manufacturing doors/windows. It was concluded that the Commissioner's decision was valid, and the assessable value needed to be recalculated in line with relevant legal provisions.

In conclusion, the appeals were disposed of with the classification of the products under sub-heading No. 3925.99 upheld, and instructions given for the reassessment of duty payable by the Appellants.