2011 (7) TMI 903 - AT - Central Excise

Valuation u/s 4A based on MRP or u/s 4 based on truncation value - According to the department the items were classifiable under subheading No. 7418.90 of the Central Excise Tariff as bathroom accessories and hence chargeable to duty on value determined under Section 4A of the Central Excise Act 1944 on the basis of their declared MRP. Classification - of bath fittings - held that - we upheld the classification of brass towel rings towel racks and robe hooks under sub-heading 83.02 and of brass tumbler holder under 7418.10 of the Tariff. As regards grab bar the same is fixed by the side of bath tub. - It s more like base metal amounting of heading 83.02. As regards bottle trap & waste the same is used in the wash basins for removing waste water and does not control or regulate the flow of water. - this item would be correctly classifiable as part of brass sanitary ware under sub-heading 7418.90 of the Tariff and as such its classification under subheading 8481.80 is not correct. Revenue s appeal is accordingly partly allowed.

Summary

Issues Involved:
1. Classification of sanitary and bathroom fittings and accessories under the Central Excise Tariff.
2. Determination of duty based on the classification.

Issue-wise Detailed Analysis:

1. Classification of Sanitary and Bathroom Fittings and Accessories:

The respondent manufactures various sanitary and bathroom fittings, including items such as shower, bottle trap, soap dish, and towel rings. The dispute centers on the correct classification of these items under the Central Excise Tariff. The department contended that these items should be classified under subheading 7418.90 as "bathroom accessories," while the Commissioner (Appeals) classified them under different subheadings, such as 8481.80 for showers and 83.02 for towel rings.

The Tribunal upheld the classification of certain items based on precedents and the Harmonized System of Nomenclature (HSN) Explanatory Notes. For instance, towel rings, towel racks, and robe hooks were classified under subheading 83.02, as they are not directly connected with sanitary functions. Similarly, the brass tumbler holder was classified under subheading 7418.10, as it is not used for sanitary purposes.

2. Determination of Duty Based on Classification:

The classification of items directly impacts the duty payable. The department argued that items classified under subheading 7418.90 should be charged based on their Maximum Retail Price (MRP) under Section 4A of the Central Excise Act, 1944. The Commissioner (Appeals) had classified items like the bottle trap under subheading 8481.80, which the department contested.

The Tribunal examined the function of the bottle trap, concluding that it does not regulate the flow of water but is instead an accessory to the wash basin. Therefore, it should be classified as part of brass sanitary ware under subheading 7418.90, aligning with the department's view. This reclassification affects the duty calculation, as items under subheading 7418.90 are subject to MRP-based duty.

Conclusion:

The Tribunal upheld the classification of towel rings, towel racks, robe hooks, grab bars, and tumbler holders under the subheadings determined by the Commissioner (Appeals). However, it set aside the classification of the bottle trap, accepting the department's plea to classify it under subheading 7418.90. Consequently, the revenue's appeal was partly allowed, impacting the duty determination based on the revised classifications.