2006 (1) TMI 359 - AT - Central Excise

Summary

Issues: Classification of casting of door handles for refrigerators under different headings - 8418.00, 7907.90, and 83.02.

In this case, the dispute revolves around the classification of casting of door handles manufactured by the appellants for refrigerators supplied to M/s. Godrej. The impugned order classified the product under sub-heading 8418.00, while the appellants claimed classification under 7907.90. The Tribunal noted that Heading 79.07 covers other articles of zinc, whereas Heading 84.80 covers refrigerators and parts of refrigerators. The appellants argued that the goods are produced by casting of zinc and only undergo fettling before chrome plating by M/s. Godrej for final use on refrigerators.

The appellants relied on the decision in Nattoji Industries case to support classification under Heading 79.07, while the Respondent cited the Pefco Foundry Chemicals Ltd. case to argue for classification as a part of a refrigerator under Heading 84.84. Reference was also made to the decision in Commissioner of Central Excise, Mumbai-II v. Mukund Ltd., highlighting the essential characteristics of finished machine parts for classification. During arguments, the appellants suggested classifying the goods under Heading 83.02 as an article of base metal, citing the Explanatory Notes under the same heading.

The Tribunal, considering the Supreme Court's decision in Pefco Foundry case that the goods only require chrome plating, concluded that they cannot be classified as a casting under Heading 79.07. However, the Tribunal found merit in the appellants' submission for classification under Heading 83.02, as the Explanatory Note under the same heading includes door handles for automobiles. Therefore, the Tribunal set aside the impugned order, directing the appellants to pay the applicable differential duty under Heading 83.02, classifying the door handles for refrigerators as an article of base metal.

In conclusion, the Tribunal's decision clarifies the classification of casting of door handles for refrigerators under different headings, emphasizing the essential characteristics of the goods and their appropriate classification under the Customs Tariff Act. The analysis considered relevant legal precedents and Explanatory Notes to determine the correct classification and duty liability of the appellants, providing a comprehensive resolution to the classification dispute.