2001 (12) TMI 122 - AT - Central Excise

Summary

Issues: Classification of industrial vacuum cleaner under chapter heading 85.09 or 84.79

Analysis:
1. The appeals arose from an Order-in-Appeal confirming differential duty and reclassification of industrial vacuum cleaners under chapter heading 85.09 instead of 84.79.
2. Appellants argued that the vacuum cleaner was designed for industrial, not domestic, use, supported by invoices and manuals showing industrial use only. The Tribunal previously remanded the matter, acknowledging the strong case for classification under 84.79 due to industrial design and use.
3. Referring to Section XVI, Heading 84.79, and technical details, appellants emphasized the heavy-duty industrial nature of the vacuum cleaner, contrasting it with domestic appliances under 85.09.
4. After hearing submissions, the Tribunal noted the item's sale to industrial units, heavy-duty nature, and use in factories, supporting classification under 84.79 as per HSN explanatory notes and Supreme Court precedent.
5. Revenue classified the item under 85.09 for domestic use, but the Tribunal found it unjustified, as the item's weight, industrial use, and trade evidence aligned with classification under 84.79.
6. Chapter Note (3) of Chapter 85 specifies machines for domestic use, which the industrial vacuum cleaner did not meet, leading to the conclusion that it should be classified under 84.79.
7. Considering the evidence, commercial understanding, and previous Tribunal orders, the Tribunal ruled in favor of the appellants, setting aside the impugned order and allowing the appeals with appropriate relief.

This detailed analysis highlights the key arguments, evidence, legal provisions, and Tribunal's reasoning leading to the classification of the industrial vacuum cleaner under chapter heading 84.79 instead of 85.09.