2003 (9) TMI 607 - AT - Central Excise

Summary

Issues: Classification of cylinder containing Carbon Dioxide (CO2) cleared with Soda Maker under Central Excise Tariff Act, 1985.

Analysis:
1. The appeal challenges the order passed by the Commissioner (Appeals) regarding the classification of a cylinder containing CO2 cleared with a Soda Maker under the Central Excise Tariff Act, 1985.

2. The appellant argues that the cylinder is specially made to work with the Soda Maker, suitable for use only with it, and is attached in a way that disburses CO2 gas into water through a nozzle. Customers purchasing the cylinder are essentially buying the entire unit, not just the CO2, as the cost of the cylinder exceeds the cost of the CO2 inside.

3. The original authority agreed with the appellant's view, but the Commissioner (Appeals) held that customers are purchasing CO2, not the cylinder, and classified it under sub-heading 2811.10. However, the appellant cites Section Notes 2(b) and (4) of Section XVI of the Central Excise Tariff, indicating that the cylinder filled with CO2 is a component of the Soda Maker and should be classified under Tariff Heading 8422.90.

4. The Section Notes state that parts suitable for use solely with a particular machine are to be classified with that machine. The Tribunal concurs with the appellant that the cylinder filled with CO2 is part of the Soda Maker, not a separate product being sold. The customer's intent is to purchase the entire unit, not just the CO2, as any CO2 container would not be suitable for use with the Soda Maker.

5. Consequently, the Tribunal sets aside the Commissioner (Appeals)'s order and allows the appeal, classifying the cylinder containing CO2 cleared with the Soda Maker under Tariff Heading 8422.90 of the Central Excise Tariff Act, 1985.