2006 (7) TMI 510 - AT - Central Excise

Summary

Issues: Classification of rotary screen set and vibratory screen set under CET sub-heading 8474.90 as parts of machinery for sorting, screening, crushing, grinding stones, ores or other mineral substances.

In this case, the issue at hand was the classification of rotary screen set and vibratory screen set manufactured by the appellants under CET sub-heading 8474.90 as parts of machinery for sorting, screening, crushing, grinding stones, ores, or other mineral substances. The appeal was made against the order of the Commissioner (Appeals) who had approved the classification list for these items under the aforementioned sub-heading. The Commissioner (Appeals) had upheld the Assistant Commissioner's order, which led to the classification under sub-heading 8474.90. However, the Commissioner (Appeals) accepted the contention of the assessees that the two items were independent machines capable of functioning independently, not linked or attached to the stone crushing machine. The Commissioner (Appeals) approved the classification claim of the assessees under CET sub-heading 8474.10 as all goods of Heading 84.74 other than parts. The visit of the Assistant Commissioner to the factory of the assessees played a crucial role in the initial classification under sub-heading 8474.90, which was set aside by the Commissioner (Appeals) in favor of classification under sub-heading 8474.10.

The Appellate Tribunal, after hearing both sides, noted the Commissioner (Appeals)'s decision and found merit in the assessees' claim for the classification of the rotary screen set and vibratory screen set as independent machines under sub-heading 8474.10, distinct from parts. The Tribunal set aside the impugned order and allowed the appeal, thereby confirming the classification of the items under sub-heading 8474.10. This judgment highlights the importance of analyzing the functionality and independence of machinery components in determining their classification under relevant sub-headings, emphasizing the need for a thorough examination of the nature and purpose of the items in question.