2016 (3) TMI 196 - AT - Central Excise

Classification of PVC Doors and Windows - Tariff sub-Heading 3925.20 which covers doors, windows and their frames and thresholds for doors OR Tariff sub-Heading 3925.99 covering other builders ware of plastics, not elsewhere specified or included - Held that - The invoices indicate clearance of PVC doors and windows indicating specific type (grey, red mate, rose wood and teak etc.), length and number of pieces of such length. The calculation attached to the clearance challan gives the length, breadth and area of the profile for calculation. There are clearances of beadings alongwith the profiles to be fixed in the customer s premises. Perusal and close scrutiny of submissions and evidences on behalf of the appellants clearly show that the appellants are clearing various channels and profiles of specific dimensions in unassembled condition which are to be used in the pre-determined premises of the clients. The process involved before fixing the windows or doors is a simple assembly at site as the profiles beadings and other items required are as per the specific dimensions of various windows or doors. We find that applying the Rule 2 (a) of the interpretation Rules, it is clear that the unassembled windows and doors, even incomplete or unfinished are to be classified with reference to goods which are complete or finished. The scope of this interpretation rule further explained by the Explanatory notes of HSN makes it clear the classification of the impugned goods shall be under 3925.20 - Decided in favour of assessee

Summary

Issues: Classification of PVC doors and windows for duty purposes under Tariff sub-Heading 3925.20 or 3925.99.

Analysis:
1. The appeals dealt with the classification of PVC doors and windows by the appellants under Tariff sub-Heading 3925.20 for duty exemption, while the Department argued for classification under 3925.99. The dispute arose over the classification for duty exemption claimed under Notification No. 15/94-CE. The Tribunal initially upheld the classification under 3925.99 but directed a re-calculation of duty based on a Supreme Court decision. Both parties appealed to the Supreme Court.

2. The appellant contended that the classification depended on the nature of the material cleared, emphasizing that unassembled PVC doors and windows were marketed as complete products. The Counsel referred to Rule 2 (a) of the Central Excise Tariff interpretation rules, which includes incomplete goods with the essential character of complete goods. The Explanatory notes further clarified the classification of unassembled articles. Previous Tribunal decisions were cited to support the appellant's argument.

3. The Department argued that the goods were intermediate products cleared in specific forms and should not be considered as doors or windows for assessment. The Tribunal examined the evidence and submissions, finding that the goods were cleared in unassembled condition for assembly at the client's premises. Invoices indicated specific types, dimensions, and quantities of PVC doors and windows, supporting the appellant's claim.

4. The Tribunal concluded that the PVC doors and windows, even in unassembled or incomplete state, should be classified under sub-heading 3925.20 based on Rule 2 (a) and the Explanatory notes. The classification under 3925.99 was set aside, and the appeals were allowed, overturning the lower authorities' decisions. The analysis highlighted the specific dimensions and assembly process at the client's premises, supporting the classification under 3925.20.

5. The judgment emphasized the application of the interpretation rules, previous Tribunal decisions, and the specific characteristics of the goods in question to determine the correct classification for duty purposes. The detailed examination of the evidence and legal provisions led to the setting aside of the lower authorities' decisions and the allowance of the appeals by the Tribunal.