2004 (9) TMI 135 - AT - Central Excise

Summary

Issues:
Classification of "AA Nozzles" made of ceramic by M/s. IVP Ltd. under Heading No. 69.01 or Heading 85.15 of the Central Excise Tariff Act.

Analysis:
The issue before the Appellate Tribunal was whether the "AA Nozzles" made of ceramic by M/s. IVP Ltd. should be classified under Heading No. 69.01 or Heading 85.15 of the Central Excise Tariff Act. The Departmental Representative argued for classification under Heading 85.15, citing the specific mention of ceramics nozzles in Heading 69.01, while the Advocate for the respondents argued for classification under Heading 85.15 based on the use of the nozzles with welding machines. The Tribunal examined the relevant provisions of the Tariff Act and the Interpretative Rules to make its determination.

The Departmental Representative contended that ceramics nozzles fall under Heading 69.01, which specifically mentions ceramics goods like nozzles, and that the most specific description should prevail in classification. She relied on the principle that specific entries take precedence over general ones. Additionally, she argued that the Explanatory Notes of HSN support this classification. She also highlighted that there is no exclusion clause in Chapter 69 to exclude parts of welding machines from its purview.

The Advocate for the respondents argued that the nozzles should be classified under Heading 85.15 as parts of welding machines, based on Note 2(b) of Section XVI of the Tariff Act. He emphasized that ceramics nozzles were not specifically covered under Chapter 84 or Chapter 85, making Note 2(a) inapplicable. He cited precedents where similar parts were classified along with the machines they were used with.

After considering the arguments from both sides, the Tribunal found that Heading 69.01 specifically mentions ceramics nozzles, and the nozzles in question should be classified under that heading. The Tribunal emphasized the importance of specific descriptions in classification, as per the Interpretative Rules. It rejected the application of Note 2(b) of Section XVI for classification under Heading 85.15, as ceramics nozzles were specifically covered under Heading 69.01. The Tribunal disagreed with the view taken in a previous case and held that ceramics nozzles are classifiable under Heading 69.01 of the Central Excise Tariff Act.

In conclusion, the Tribunal ruled in favor of classifying the "AA Nozzles" made of ceramic by M/s. IVP Ltd. under Heading No. 69.01 of the Central Excise Tariff Act, based on the specific mention of ceramics nozzles in that heading and the principles of classification outlined in the Interpretative Rules.