2012 (11) TMI 357 - HC - Central Excise

Classification whether Coil Transfer Car is classifiable under the Heading 86.06 Railway or Tramway Goods Vans and Wagaons not self-propelled instead of under Heading No. 84.55 - Held that - Car is classifiable under chapter heading 86.06 sub-heading 8606.00, as Car is used only for transfer of coils in the rolling mill from one place to other place - Tribunal has not committed any error in classifying the Coil Transfer Car under heading 86.06

Summary

Issues:
Classification of 'Coil Transfer Car' under Central Excise Tariff Act, 1985.

Analysis:
1. The appeal under Section 35G of the Central Excise Act, 1944 arose from a Final Order passed by the CESTAT, where the appeal filed by the respondent/Revenue was allowed.
2. The appellant, engaged in manufacturing excisable goods, including a 'Coil Transfer Car,' claimed classification under Chapter sub-heading No. 8455.00 under heading No. 84.55 of the Central Excise Tariff.
3. The Assistant Commissioner directed the appellant to show cause for classification under sub-heading No. 8606.00, heading No. 86.06, and confirmed the demand of Rs. 1,78,096/-, which the Commissioner (Appeals) later set aside.
4. The CESTAT allowed the appeal by the Revenue, classifying the 'Car' under heading No. 86.06, considering it not an integral part of the rolling mill equipment.
5. The Tribunal upheld the classification under heading 86.06, stating that the 'Car' is used for transporting coils within a short distance and does not modify the metal's structure or quality like rolling mills do.

Legal Principles:
1. The judgment referred to principles from previous cases, emphasizing classification based on popular or commercial understanding rather than technical definitions.
2. It was noted that goods under a general heading for Excise Duty must be taxed accordingly, as per the Indian Tool Manufacturers case.
3. The judgment highlighted that once an article is classified under a specific entry, the basis of classification is not open to question, as per the Dunlop India Ltd. case.

Conclusion:
1. The Tribunal's classification of the 'Coil Transfer Car' under heading 86.06 was upheld based on commercial understanding and the nature of its use as a transporter within a limited distance.
2. The judgment dismissed the appeal, affirming the classification under heading 86.06, and no costs were awarded.