2007 (6) TMI 81 - AT - Central Excise

Classification Revenue contended that Top Charging Equipment classifiable under Heading 8417.90 but as per Commissioner(A) classifiable under Heading 8428.00 Held that Commissioner(A) classification was correct and allowed

Summary

Issues: Classification of "Top Charging Equipment" under Heading 8417.90 or Heading 8428.00.

In this judgment by the Appellate Tribunal CESTAT, NEW DELHI, the issue at hand is the classification of "Top Charging Equipment." The revenue argues for classification under Heading 8417.90, while the Commissioner (Appeals) classified it under Heading 8428.00. The revenue contends that the equipment should be considered a "part" of an industrial furnace, whereas the Commissioner views it as "lifting, handling, loading, or unloading machinery."

The Tribunal analyzed the function of the machinery, as described in the Commissioner's order, which is primarily to lift and load raw materials into the furnace. The Commissioner also considered the relevant HSN Explanatory Note before making the classification decision. The key consideration lies in whether the lifting or handling device is an integral part of the industrial furnace or an independent unit distinct from it.

The Tribunal referred to the relevant HSN Explanatory Notes for Heading 8417.90 and Heading 8428.00. The former includes equipment that is an integral part of furnaces, while the latter involves devices that are distinct and independent from the furnaces. The decision hinges on whether the equipment forms an integral part of the furnace or is a separate unit.

Based on the factual findings, the Tribunal determined that the Top Charging Equipment is not integrated into the main machine and can independently handle various raw materials. Consequently, the equipment is deemed to be an independent lifting and unloading device falling under Heading 8428.00. The classification under Heading 8428.00 is affirmed, and the revenue's appeal is dismissed.

In conclusion, the Tribunal upheld the Commissioner's classification decision, finding no error in the order. The appeal and cross-objection were disposed of accordingly, with the classification of the Top Charging Equipment under Heading 8428.00 confirmed.