2008 (5) TMI 16 - AT - Central Excise

Plastic shelves used in bathroom/kitchen for keeping small items like tooth paste, brushes, creams, soaps etc. - Revenue claim classification u/ch 9403.00 as furniture assessee claim CH 3924.90 as Household Articles articles in question before us are different, it is evidenced that they have no wheels, they are not trolleys & they are not meant to be kept on floor Explanatory note of CH 94 excludes small furnishing goods impugned goods are classifiable u/ch 3924.90 as Household Articles

Summary

Issues Involved:
1. Classification of the items manufactured by the respondent.
2. Conflicting judgments on the classification of similar products.
3. Applicability of HSN Explanatory Notes to Chapter 94.
4. Correct classification under Chapter Heading 3924.90 or 9403.00 of CETA 1985.

Detailed Analysis:

1. Classification of the Items Manufactured by the Respondent:
The primary issue is the classification of the items manufactured by the respondent. The respondent claims that their products are classifiable under Chapter Heading No. 3924.90 of CETA 1985 as "Household Articles." This classification was accepted by the Commissioner (Appeals). However, the Revenue contends that the products should be classified under Chapter Heading 9403.00 as "furniture."

2. Conflicting Judgments on the Classification of Similar Products:
The referral bench noted conflicting judgments regarding the classification of similar products. In a previous case involving the same respondents, the Tribunal held that "Plastic shelves used in bathroom for keeping small items" are classifiable under sub-heading 3924.90. Conversely, in the case of Pradeep Rathod v. Commissioner of Central Excise, Surat, the Tribunal classified "Trolleys with several columns" as furniture under heading 94.03.

3. Applicability of HSN Explanatory Notes to Chapter 94:
The Tribunal considered the HSN Explanatory Notes to Chapter 94, which exclude small furnishing goods of wood and office equipment of plastics or base metal from being classified as furniture. The Tribunal found that the products in dispute, being plastic shelves, are small articles used on table tops, kitchen platforms, or bathroom platforms, and thus should not be classified under Chapter 94.

4. Correct Classification under Chapter Heading 3924.90 or 9403.00 of CETA 1985:
The Tribunal examined the use and design of the products. The Revenue argued that the products are used as mini cupboards or furniture and should be classified under Chapter 94.03. However, the Tribunal found that the products are commonly used as household articles and not as furniture. The Tribunal emphasized the importance of popular trade and commercial parlance over dictionary and technical meanings, citing a Supreme Court decision. The Tribunal concluded that the products are more appropriately classified under Heading 3924.90 as "other household articles of plastic."

Conclusion:
The Tribunal held that the classification of the items manufactured by the respondent should be under Heading 3924.90, as these items are commonly used as household articles and not as furniture. The Tribunal found the judgment in the case of Cello Household Appliances Ltd. to be the correct law regarding the classification of the disputed articles. The reference was answered in favor of the respondent, and the file was directed to be placed before the Referral bench for further action.