2005 (2) TMI 563 - AT - Central Excise

Summary

Issues:
Classification of HDPE pipes and coupler under Heading 84.24 or Heading 39.17 of the Central Excise Tariff Act.

Analysis:
The appeal involved a dispute regarding the classification of HDPE pipes and coupler manufactured by M/s. Phoel Industries Ltd. under the Central Excise Tariff Act. The appellant argued that the products should be classified under Heading 84.24 as they are used in the manufacture of sprinkler irrigation systems, which are chargeable to nil rate of duty. Initially, the appellant paid excise duty under Chapter 39 of the Tariff but later ceased payment realizing there was no duty leviable on the products. The appellant cited precedents where the Appellate Tribunal had classified similar products under sub-heading 8424.91 of the Tariff. The appellant also highlighted that the HDPE pipes and fittings conformed to ISI specifications for sprinkler irrigation equipment.

The Tribunal considered both parties' submissions and noted that the appellant's initial self-classification under Heading 39.17 did not prevent them from challenging the classification later. Relying on previous decisions, including the case of Elgi Ultra Appliances Ltd. v. C.C.E., the Tribunal held that LDPE/HDPE, as component parts of sprinkler irrigation systems, should be classified under sub-heading 8424.91 of the Central Excise Tariff. The Tribunal pointed out that the Supreme Court had affirmed a decision in a similar case, further supporting the classification under Heading 84.24. Consequently, the Tribunal set aside the impugned order and allowed the appeal in favor of the appellant, classifying the products under sub-heading 8424.91 of the Central Excise Tariff.