2015 (9) TMI 674 - AT - Central Excise

Classification of control panels - manufactured for general electric and can be put to use for X-ray machines and the application is exclusive. - Classification under Heading 8537.00 or Heading 9022.10 - Held that - Typically in a medical X-ray, there are number of independent apparatus which are put together and work as a system. - 4-digit level in the HSN and in the Central Excise Tariff is exactly same. Further in the Central Excise Tariff, further division at 6-digit level is based upon whether such apparatus are for medical, surgical, dental or veterinary use or otherwise, while in the case of HSN at the 6-digit level, are also similar. However, it further distinguishes between X-rays and alpha, beta or gamma radiations. - parts and accessories are separately listed thereafter in the HSN Explanatory Notes and examples are also listed. Thus, under the HSN Explanatory Notes, X-ray control panels and desks are not considered as parts and accessories. - control panels are apparatus in themselves and cannot be considered as parts or accessories . Undoubtedly, these apparatus are based on the use of X-ray and are for medical purpose. These would be classified under Heading 9022.10, but since these are not parts or accessories, the same will not be entitled to the benefit of nil rate of duty. - Decided against assessee.

Summary

Issues:
Classification of goods under Heading 9022.10 for rate of duty applicability.

Analysis:
The appellant, a manufacturer of control panels exclusively for X-ray machines, disputed the duty rate applicable under Heading 9022.10. The appellant claimed eligibility for nil rate of duty under specific entries, contending that their goods were parts of X-ray machines. The Revenue argued that the goods were apparatus, not parts, and thus not entitled to the exemption. The Tribunal noted the absence of the appellant during proceedings due to closure and unavailability of contact. The learned AR presented arguments citing relevant case laws emphasizing the classification criteria for apparatus versus parts and accessories.

The Tribunal examined the nature of the goods in question, comparing them to a system of independent apparatus working together for a specific purpose, akin to a computer setup. Referring to the HSN Explanatory Notes, the Tribunal highlighted the distinction between apparatus and parts/accessories, specifically listing X-ray control panels as apparatus, not parts. Citing precedents, including the case of Modern Malleable Ltd., the Tribunal reiterated the criteria for classifying goods as apparatus based on specific functions and purposes. Considering the detailed descriptions in the Explanatory Notes and the observations of the Hon'ble Supreme Court, the Tribunal concluded that the control panels in question were apparatus and not parts or accessories, falling under Heading 9022.10 without entitlement to nil rate of duty.

In light of the evidence presented, including the Explanatory Notes, case laws, and the nature of the goods, the Tribunal dismissed the appeals filed by the appellant, affirming the classification of the control panels as apparatus under Heading 9022.10, thereby upholding the duty rate determined by the Revenue.

This detailed analysis reflects the Tribunal's thorough consideration of the classification issue, relying on legal principles, case laws, and explanatory materials to reach a reasoned decision regarding the duty rate applicability for the appellant's goods.