2016 (12) TMI 1382 - AT - Central Excise

Benefit of exemption N/N. 06/2002-CE dated 01.03.2002 - Climbers - Thriller Range - denial on the ground that the goods not fall under the category of sports goods - Held that - the products in question are Climbers and Thriller which are used for children s play & games and are installed in playground & gardens. As far as for small children, these are sports equipment for their play - The lower authorities have contended that the sports which are played nationally and internationally only are the sports and play of the children in garden and playground, are not sports which is not agreed. For every age there are different type of plays & games, small children s sports is the games and plays which they play in the garden with the use of these equipment, therefore these are the sports activity for the children The equipment used in children s playground are falling under the classification of sports goods falling under Chapter 9506 as per Bureau of Indian Standards. Therefore there is no doubt that the product in question that being equipment used in children s playground are sports goods. Benefit of notification available - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of goods as sports goods for exemption under Notification No. 06/2002-CE dated 01.03.2002.

Analysis:
1. The appellants manufactured goods falling under Chapter 95 and claimed exemption under Notification No. 06/2002-CE for sports goods, including Climbers and Thriller Range.
2. The department denied exemption, stating these goods did not fall under the category of sports goods used for competitive games.
3. The appellant argued that Climbers and Thriller were used in gardens/playgrounds for children's play and games, thus qualifying as sports goods.
4. The Bureau of Indian Standards classified playground equipment for parks as sports goods, supporting the appellant's claim.
5. Previous instances where similar demands were dropped for the appellant further strengthened the argument for exemption.
6. The lower authorities' contention that only nationally or internationally played sports qualified as sports goods was rejected.
7. The Tribunal observed that goods used for children's play in gardens were indeed sports equipment for their activities.
8. Referring to ISI standards and HSN explanatory notes, the Tribunal concluded that playground equipment for children fell under the classification of sports goods.
9. Given the history of dropped demands in similar cases and the nature of the goods not used for general exercise, the Tribunal allowed the appeal, setting aside the impugned order.
10. The Climbers and Thriller equipment used in playgrounds and gardens for children's play were deemed correctly classifiable as sports goods, entitling them to the exemption under the notification.

This detailed analysis highlights the classification of goods as sports goods for exemption under the specified notification, emphasizing the Tribunal's interpretation and application of relevant standards and precedents to reach its decision.