2004 (9) TMI 442 - AT - Central Excise

Summary

Issues: Classification of plastic spring bangles under Chapter sub-heading 9503.00 or sub-heading 3926.90

Analysis:
The appellants in this case were required to pre-deposit a duty amount and penalty related to the classification of plastic spring bangles. They argued that the items should be classified as toy bangles for children's amusement under Chapter sub-heading 9503.00, not under sub-heading 3926.90 as articles of plastic. The appellant relied on a judgment by the Chennai Bench in the case of Funskool (India) Ltd., where toys were classified only under sub-heading 95.03. On the other hand, the revenue contended that the items should be treated as articles of plastic based on commercial terms, supporting the classification made by the revenue.

Upon careful consideration, the Tribunal noted the detailed analysis in the Funskool (India) Ltd. case regarding the classification of toys made of plastics, upholding the classification under Heading 9503.00 as appropriate. The Tribunal found the revenue's classification as articles of plastic under other headings to be incorrect, indicating that the cited judgment was applicable. Consequently, the Tribunal allowed the stay application unconditionally, waiving the pre-deposit amounts. Since the issue was deemed to be covered by the Tribunal's ruling and the amounts involved were substantial, an early hearing was granted, scheduled for January 10, 2005. Importantly, no recovery was permitted until the appeal was disposed of, ensuring no immediate financial impact on the appellants.