1997 (4) TMI 461 - AT - Central Excise

Summary

Issues: Classification of wooden top laminated under Central Excise Tariff.

In the case before the Appellate Tribunal CEGAT, New Delhi, three appeals were filed by different appellants against orders passed by the Collector of Central Excise (Appeals), Bombay, regarding the classification of wooden top laminated products. The appellants, engaged in manufacturing these products supplied for refrigerators, were benefiting from small-scale exemption under the old Central Excise Tariff. However, with the introduction of the new Central Excise Tariff, the Revenue sought to classify these products as part of refrigerators, thereby affecting their eligibility for the small-scale exemption.

The main issue for consideration was whether the wooden top laminated products manufactured by the appellants should be classified as parts of refrigerators or not. This classification was crucial as it determined the appellants' eligibility for the small-scale exemption scheme. The appellants argued that the wooden tops were not essential parts of refrigerators, citing a previous order-in-appeal that supported their claim. The Revenue contended that the items specially made for refrigerators should be considered part of the refrigerator.

The Tribunal examined the classification of the wooden tops under the old Central Excise Tariff and noted that they were previously classified under a different category covering wood and articles of wood, not as parts of refrigerators. It was observed that the wooden tops, although used in the manufacture of refrigerators, were more in the nature of accessories rather than essential parts. The Tribunal also considered the intention behind introducing the new Central Excise Tariff Act, 1985, and found no indication of denying small-scale exemption to manufacturers like the appellants.

Referring to a previous decision by the Collector of Central Excise (Appeals), Bombay, which classified the tops as accessories and not essential parts of refrigerators, the Tribunal concluded that the wooden tops should not be considered as parts of refrigerators. As a result, the Tribunal allowed all three appeals in favor of the appellants, thereby upholding their eligibility for the small-scale exemption scheme.