2006 (9) TMI 400 - AT - Central Excise

Summary

Issues involved:
Classification of control panels under heading 8537.00 or 8424.00.

Detailed Analysis:
The issue in the present appeal revolves around the classification of control panels being manufactured by the appellants. The revenue has classified the control panels under heading 8537.00 and confirmed the duty, while the appellant argues that the control panels, specifically designed for use in Shot Blasting Machine, should be classified under heading 8424.00.

The lower authorities noted that orders and descriptions of the goods were for control panels, which were cleared separately from the main machine. They emphasized that control panels are specifically mentioned under heading 8537.00, leading to their classification accordingly.

Upon review, it was found that as per section note 2(a) of Section XVI, parts included in any heading of Chapter 84 or Chapter 85 are to be classified in their respective headings. Section note 2(b) states that parts suitable for use solely or principally with a particular kind of machine are to be classified with that machine. The appellants relied on section note 2(b), but it was clarified that this applies to parts not specifically included in other headings. Since control panels are explicitly mentioned under heading 8537.00, the classification under this heading is deemed appropriate. The appellants failed to demonstrate that the control panels were solely designed for use with shot blasting machines. Therefore, the appeal was dismissed, and the classification under heading 8537.00 was upheld.

In conclusion, the judgment reaffirmed the classification of the control panels under heading 8537.00 based on the specific designations and the absence of evidence showing exclusive suitability for shot blasting machines. The legal analysis emphasized the importance of section notes in determining the correct classification of goods under the relevant tariff headings.