2018 (6) TMI 374 - AT - Central Excise

Exemption to Sports Goods - benefit of N/N. 6/2006-CE dated 1.3.2006 - whether Thrillers and Climbers manufactured and cleared by the appellant are covered by the expression Sports Goods as used under N/N. 6/2006-CE dated 1.3.2006 and are eligible for exemption under the said notification? - Held that - Identical issue decided in appellant own case M/S ARIHANT INDUSTRIAL CORPN. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, THANE 2016 (12) TMI 1382 - CESTAT MUMBAI , where it was held that 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 - impugned goods eligible for exemption - appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Whether 'Thrillers' and 'Climbers' manufactured and cleared by the appellant are covered by the expression "Sports Goods" under Notification No. 6/2006-CE dated 1.3.2006 and are eligible for exemption under the said notification.

Analysis:
The issue in the present appeals revolves around the classification of 'Thrillers' and 'Climbers' as "Sports Goods" for exemption under Notification No. 6/2006-CE. The appellant argued that a previous Tribunal decision supported their claim, making the impugned orders unsustainable. The Revenue, represented by the Assistant Commissioner, maintained the findings of the impugned order.

Upon careful consideration of submissions, the Tribunal referred to a previous judgment where it was established that the products in question, used for children's play in playgrounds and gardens, qualify as sports equipment for children's activities. The Tribunal highlighted that various equipment, including those used in children's playgrounds, are categorized as "sports goods" under relevant standards. The Tribunal rejected the notion that only nationally or internationally played sports qualify, emphasizing that equipment used in children's play areas also fall under the classification of sports goods.

Based on the above analysis and previous Tribunal decisions, it was concluded that 'Thrillers' and 'Climbers' used in playgrounds and gardens for children's play are correctly classified as "sports goods." As these equipments are not used for general physical exercise, they are entitled to exemption under Notification No. 6/2006-CE. Consequently, the impugned orders were set aside, and the appeals were allowed. The issue was deemed settled based on the established legal precedent.

The judgment, pronounced on 19.04.2018, also addressed and disposed of any early hearing applications filed by the appellant. The decision reaffirmed the classification of 'Thrillers' and 'Climbers' as sports goods, ensuring their eligibility for the exemption specified under Notification No. 6/2006-CE.