2003 (8) TMI 46 - SC - Central Excise

Classification of electric fans of different varieties - Held that - Restore the decision of the Collector (Appeals who based his decision on the fact that the fans in question were designed primarily as table fans, although they were capable for being hung from wall or ceiling. He rightly pointed out that, because of the peculiarity of design and manufacture, the concerned fans were entirely different from regular cabin fans which could not be adapted as table fans; also basing his decision on the description of the fans in the literature distributed by the appellants. The literature describes it predominantly as a table fan, though capable of being fixed on the wall or ceiling thus attracting ad valorem duty of 5% under T.I. No. 33(1)(a). There was no justification for the CEGAT to interfere with the order of the Collector (Appeals). In favour of assessee.

Summary

Issues: Classification of electric fans under Tariff Item No. 33(1)(a) or 33(1)(b) for duty purposes and exemption under Notification No. 46/84.

Analysis:
1. The appellant sought approval for classification and concessional duty rate for four models of fans - 'Mini', 'Tini', 'Chiki', and 'Miki' under Tariff Item No. 33(1) and Notification No. 46/84.
2. The Assistant Collector classified the fans under T.I. No. 33(1)(b) for the benefit of the notification, but the Collector (Appeals) categorized them as table fans under T.I. No. 33(1)(a) due to design and literature descriptions.
3. The CEGAT had a split opinion, with the Judicial Member viewing the fans as table fans, while the Vice President disagreed, leading to a third Member siding with the Vice President, resulting in upholding the Assistant Collector's order.
4. The Tariff details under Item No. 33 specify different rates of duty for various types of electric fans, including table fans, cabin fans, and circulator fans.
5. The Collector (Appeals) justified the classification based on the design and predominant usage as table fans despite their adaptability for wall or ceiling mounting, supported by literature descriptions.
6. The Supreme Court agreed with the Collector (Appeals) that the fans were primarily designed as table fans, overturning the CEGAT's decision, and restored the Collector's order for classification and exemption under the notification.
7. Consequently, the appeal was allowed without costs, affirming the Collector (Appeals)'s classification decision as reasonable and justifiable.