2008 (8) TMI 617 - AT - Central Excise

Summary

Issues:
Classification of "Chaffing Dishes" under CET sub-heading 7323.90 or 7321.20.

Analysis:
The main issue in this appeal was the correct classification of "Chaffing Dishes" under the Central Excise Tariff (CET) sub-headings 7323.90 or 7321.20. The Revenue contended that the items should be classified under sub-heading 7321.20 as non-electric domestic appliances, attracting a duty of 16% ad valorem. However, the assessees argued that the items should be classified under sub-heading 7323.90 as articles of kitchen and kitchenware, attracting a nil rate of duty. The Commissioner (Appeals) had initially accepted the assessees' classification, setting aside the demand, confiscation, and penalties imposed by the adjudicating authority.

The Tribunal analyzed the definitions and characteristics of both CET sub-headings. Heading 73.23 covers articles of iron or steel for household use, while heading 73.21 covers non-electric domestic appliances like plate warmers. The Revenue relied on HSN Notes to support their classification under sub-heading 7321.20, which required the appliances to be designed for heat production and utilization for cooking or boiling purposes, not exceeding household requirements. However, the Tribunal found that the "Chaffing Dishes" were not designed for space heating, cooking, or boiling but for keeping cooked food warm before serving in hotels and restaurants. The item consisted of two containers, with the bottom one holding hot water to keep the food warm. Moreover, similar products by other manufacturers were classified under sub-heading 7323.90 as kitchenware.

Based on these findings, the Tribunal concluded that the "Chaffing Dishes" should be classified under CET sub-heading 7323.90 as articles of kitchen and kitchenware. Therefore, they upheld the impugned order and dismissed the appeal, rejecting the Revenue's classification under sub-heading 7321.20.