2007 (9) TMI 81 - AT - Central Excise

Classification of parts of water filter Impugned goods is only filtering apparatus, classifiable under heading 84.21- By saying them other household articles of steel they can not be classified under Heading 73.23 Hence exemption under Not. 4/97 not allowable

Summary

Issues: Classification of goods under different headings for duty exemption

1. The main issue in this case pertains to the classification of goods manufactured and cleared by the respondents under different headings for the purpose of availing duty exemption under a notification. The goods in question, specifically the top, bottom, and lid portions of a water filter, were classified by the respondents under Heading 73.23 as parts of household articles of steel to claim the benefit of a notification granting nil rate of duty. The Revenue, on the other hand, claimed that these items should be classified under Heading 84.21 as parts of a water filter.

Analysis:

1. The dispute revolved around the classification of the top, bottom, and lid portions of a water filter manufactured by the respondents. The respondents classified these items under Heading 73.23 as parts of household articles of steel to avail duty exemption under a specific notification. The Revenue, however, argued that these items should be classified under Heading 84.21 as parts of a water filter. The ceramic candle in the assembly was highlighted as a device to filter water containing impurities, indicating the purpose of the apparatus.

2. The Tribunal noted that the water filter assembly, including the top, bottom, and lid portions, was essentially a filtering and purifying apparatus for water. The ceramic candle served the purpose of filtering impurities from the water. The HSN notes under Heading 84.21 specifically covered filtering and purifying machinery apparatus for liquids, which aligned with the function of the water filter in question.

3. After considering all aspects, the Tribunal concluded that the water filter, of which the disputed items were parts, should be classified under Heading 84.21 as parts of a filtering/purifying apparatus for water. The Tribunal emphasized that Heading 84.21 was a specific entry for water filters, making it the appropriate classification for the subject items. Consequently, the impugned order was set aside, and the appeal of the Revenue was allowed.

This detailed analysis highlights the key arguments presented by both parties regarding the classification of the goods and the Tribunal's reasoning in determining the appropriate classification under the Customs and Excise Tariff Act.