2011 (4) TMI 312 - AT - Central Excise

Manufacture Classification - P.V.C. Floats classifiable under chapter sub heading no. 3926.90 or sub heading no. 8907.00 of CETA 1985 - Held that - it does not qualify to be termed as a floating structure product is classifiable under chapter sub heading no. 3926.90

Summary

Issues:
Classification of P.V.C. Floats under Central Excise Tariff Act, 1985

Analysis:
The case involved the classification of P.V.C. Floats manufactured by M/s Garware Marine Industries Ltd. under the Central Excise Tariff Act, 1985. The Joint Commissioner alleged that the assessee misclassified the product under chapter subheading no. 3926.90 instead of 8907.00, resulting in non-payment of special excise duty. The Additional Commissioner confirmed the show cause notice and imposed a penalty. However, the Commissioner(Appeals) allowed the assessee's appeal based on the following grounds:

(i) The P.V.C. Float, being a small item made of P.V.C. used to support fishing nets, does not qualify as a floating structure under Chapter 89.
(ii) Chapter 89 pertains to vehicles, aircraft, vessels, and associated transport equipment, which the P.V.C. Float does not fall under.
(iii) The extended period could not be invoked as there was no suppression of facts, and the product had been classified under Chapter 39.26 since 1994.

The Revenue appealed the decision, arguing that the P.V.C. Float should be classified under Chapter 89.07 as a floating structure. The Revenue contended that the product serves a specific purpose and should not be classified under Chapter 39.26. However, the Tribunal disagreed with the Revenue's argument, citing that Chapter 89.07 covers floating structures like buoys and beacons, which the P.V.C. Float did not resemble. The Tribunal agreed with the Commissioner(Appeals) that the P.V.C. Float did not qualify as a floating structure under Chapter 89.07.

In conclusion, the Tribunal found no merit in the Revenue's appeal and rejected it. The judgment upheld the classification of the P.V.C. Floats under Chapter 39.26 and dismissed the Revenue's claim that it should be classified under Chapter 89.07.