2012 (5) TMI 472 - AT - Central Excise

Classification - classification of other bathroom accessories of brass, namely soap dishes, toilet paper holder, tumbler holder, towel ring, towel rack, towel rack with single rail, coat hook, robe hook and for glass shelf - respondent were paying Central Excise duty on these items by classifying the same under sub-heading 7419.99 of the Central Excise Tariff on their transaction value determined under Section 4 of the Central Excise Act. The Department was of the view that all these items are sanitary ware and parts thereof made of brass and hence the same are classifiable under sub-heading 7418.90 of the Tariff Held that - other than soap dishes and toilet paper holder of brass, whose classification has been upheld by the Commissioner (Appeals) under sub-heading 7418.90, none of the other items namely towel ring/towel racks, robe hook, coat hook, tumbler holder and glass shelf are classifiable under heading 7418.90, the duty has been correctly paid in respect of these items on the value determined under Section 4, no infirmity in the impugned order, Revenue s appeal dismissed

Summary

Issues Involved:
Classification of bathroom accessories made of brass under Central Excise Tariff.

Detailed Analysis:

Issue 1: Classification Dispute
The respondent manufactured bathroom fittings and accessories of brass, including soap dishes, toilet paper holders, tumbler holders, towel rings, coat hooks, robe hooks, and glass shelves. The Department contended that these items should be classified under sub-heading 7418.90 as sanitary ware and parts thereof made of brass, attracting duty under Section 4A. A show cause notice was issued for demand of differential duty, interest, and penalty. The Additional Commissioner confirmed the duty demand, interest, and imposed a penalty. The Commissioner (Appeals) upheld the duty demand only for soap dishes and toilet paper holders under sub-heading 7418.90, setting aside the remaining demand but upholding the penalty.

Issue 2: Arguments
The Department argued that all items, including tumbler holders, towel rings, towel racks, coat hooks, robe hooks, and glass shelves, should be classified under sub-heading 7418.90 as sanitary fittings due to their bathroom use. The respondent's counsel contended that glass shelves should be classified under sub-heading 7015, while items like towel rings, towel racks, coat hooks, and robe hooks fall under heading 83.02 as articles of base metals, not sanitary ware.

Issue 3: Tribunal's Decision
The Tribunal analyzed the classification of each item. It determined that glass shelves made of glass should be classified under sub-heading 7015 and not under Chapter 74, which pertains to copper articles. While soap dishes and toilet paper holders were correctly classified under sub-heading 7418.90 as sanitary ware, other items like tumbler holders, robe hooks, coat hooks, towel rings, and towel racks were not connected with sanitary functions. These items were found to be more appropriately classified under heading 83.02 as base metal mountings and fixtures, not as sanitary ware. The Tribunal dismissed the Revenue's appeal, affirming the Commissioner (Appeals) decision on classification and duty payment.

This detailed analysis of the legal judgment provides a comprehensive overview of the classification dispute regarding bathroom accessories made of brass under the Central Excise Tariff.