2006 (7) TMI 389 - AT - Central Excise

Summary

Issues:
Classification of "Stainless Steel LPG Stoves" under SH 7321.20 vs. SH 7321.10 of the CETA Schedule.

Analysis:
The dispute in this case revolves around the classification of "Stainless Steel LPG Stoves" for the period January to June '99. The assessee claimed classification under SH 7321.20, which was accepted by the lower appellate authority. However, the department contended that the stoves should be classified under SH 7321.10, leading to the appeal.

The department argued that even though neither SH 7321.10 nor SH 7321.20 explicitly mentioned "stoves," the mention of "plate warmers" in SH 7321.10, functionally similar to LPG stoves, indicated that LPG stoves should be classified under that sub-heading. The department questioned why a cooking appliance like an LPG stove would not fall under SH 7321.10.

The consultant for the respondent raised a preliminary objection regarding the unauthorised show-cause notice issued for revising the classification, citing the lack of permission from the jurisdictional Commissioner. Additionally, the consultant highlighted a previous classification by the department of LPG stoves under SH 7321.20 for another manufacturer, arguing inconsistency in classification. The consultant emphasized that LPG stoves were known in the market as such and not as general cooking appliances, stressing the lack of evidence supporting classification under SH 7321.10.

Upon careful consideration, the Tribunal found that the preliminary objection raised by the consultant had not been challenged earlier by the assessee and thus could not be sustained. The Tribunal also dismissed the consultant's reliance on a show-cause notice issued to another party by the department as irrelevant to the classification dispute at hand.

The Tribunal analyzed the relevant Tariff entries, highlighting that SH 7321.10 specifically covered cooking appliances and plate warmers. Considering that LPG stoves were used for cooking purposes by customers, the Tribunal concluded that they fell under the category of cooking appliances, aligning them with SH 7321.10. The functional similarity between LPG stoves and plate warmers further supported their classification under the same entry. The Tribunal emphasized the importance of specific entries over general ones, ultimately allowing the Revenue's appeal and classifying the LPG stoves under SH 7321.10.

In conclusion, the Tribunal ruled in favor of the Revenue, emphasizing the classification of "Stainless Steel LPG Stoves" under SH 7321.10 as cooking appliances based on functional similarities and specific Tariff entries.