2003 (5) TMI 315 - AT - Central Excise

Summary

Issues:
Classification of Decorative Plastic Photo Frames under sub-heading 3926.90 or Heading 83.06 of the Central Excise Tariff Act.

Analysis:
The issue in the three appeals by M/s. Hemkunt Industries revolves around the classification of Decorative Plastic Photo Frames under the Central Excise Tariff Act. The Appellants claim classification under sub-heading 3926.90, while the Commissioner (Appeals) confirmed classification under Heading 83.06. Shri R. Pal Singh argues that the frames, primarily made of plastic and velvet with a steel sheet, should be classified under Heading 39.26 as they are not wholly of Base Metal. He asserts that the steel frame is for decoration, not essential character. On the contrary, Shri Vikas Kumar contends that the steel sheet, being visible and decorative, imparts essential character to the frames, citing precedents and emphasizing the weight and value of the steel component.

The Tribunal carefully evaluates the arguments presented. Heading 83.06 pertains to frames of base metal, indicating that frames made entirely of Base Metal fall under this classification. The Tribunal notes that the frames in question are composed of both plastic and steel, with the outer boundary being plastic covered in velvet, and the visible front side being a steel sheet. The Revenue argues for classification under Heading 83.06, attributing essential character to the steel sheet. However, the Tribunal disagrees, asserting that the plastic component imparts the essential character of a photo frame, while the steel sheet adds only decorative value. Rule 3(b) of the Interpretative Rules is invoked, stating that composite goods are classified based on the material providing essential character, leading to the classification of the frames as articles of plastic under Heading 39.26. The Tribunal rejects the Revenue's argument that the steel sheet is crucial, emphasizing that the frames are not entirely of Base Metal, thus classifying them under sub-heading 3926.90.

In conclusion, the Tribunal rules in favor of the Appellants, classifying the Decorative Plastic Photo Frames under sub-heading 3926.90 of the Central Excise Tariff. The decision is based on the determination that the essential character of the frames is derived from the plastic component, not the steel sheet, which is deemed to offer only decorative value. The Tribunal's analysis underscores the significance of material composition in classification under the Tariff Act, ultimately allowing all three appeals.