2004 (8) TMI 135 - AT - Central Excise

Summary

Issues involved:
Classification of 'INSULATED POLYURETHANE FOAM PANELS' and "INSULATED POLYURETHANE FOAM DOORS' under Chapters 3926.10, 3925.91, or 8418.00.

Analysis:
(a) Classification Issue:
The main issue revolves around the classification of 'INSULATED POLYURETHANE FOAM PANELS' and "INSULATED POLYURETHANE FOAM DOORS' under different chapters. The appellants argue for classification under Chapters 3926.10 and 3925.91, as approved by the ld. CCE (Appeals), while the Revenue claims classification under 8418.00. The goods consist of polyurethane foam panels and doors supported by stainless steel frames with hinges and latches.

(b) Composition and Construction:
The polyurethane foam panels and doors contain a specific percentage of foam and painted steel, forming wall, roof, and floor sections in standard sizes. These components are designed for composite construction between metal sheets to create pre-fabricated rooms for cold or hot storage purposes.

(c) Architectural Certificates and Distinct Use:
Architect certificates have been provided to distinguish the use of these entities in buildings from refrigerating equipment. They are not to be considered as panels and doors sold as cabinets for refrigerating equipment.

(d) Trade Notices and Classification:
Trade notices from different authorities classify similar products under Chapter 39, supporting the argument for classification under this chapter.

(e) Revenue's Grounds and Arguments:
The Revenue relies on various grounds, including the interpretation of HSN notes and the nature of the goods as pre-fabricated equipment designed to receive refrigeration units. They argue that the goods are essentially walk-in coolers and should be classified under 8418.

(f) Tribunal's Decision and Precedent:
The Tribunal refers to a previous case involving the same appellant where industrial cold storage doors were classified under Heading 8418.99, considering them more than ordinary steel doors due to insulation and other features. The Tribunal emphasizes the purpose and use of the panels and doors in maintaining desired temperatures and insulation in large cold storage rooms.

(g) Classification as Parts of Cold Storage Rooms:
The Tribunal asserts that the panels and doors are parts of large cold storage rooms, not cabinets for refrigerating equipment. They are fabricated on-site to create walk-in cold storages, distinct from traditional refrigeration units.

(h) Classification Based on Essential Character and Function:
Considering the essential character and function of the goods, the Tribunal concludes that they should be classified based on their own merits. The presence of rigid urethane foam gives them a distinct character, leading to classification under Chapter 39 as builders-ware of plastic.

(i) Application of Manufacturer Concept and Exigibility:
The Tribunal highlights the application of the concept of manufacturer and exigibility under the Central Excise Act before determining classification. It distinguishes the requirements under the Central Excise Act from the Customs Tariff Act for classification.

(j) Dismissal of Revenue's Grounds:
Ultimately, the Tribunal dismisses the Revenue's grounds and upholds the classification under Chapter 39.25 of the Central Excise Tariff Act, 1985 schedule.

In conclusion, the appeal is dismissed, and the classification of 'INSULATED POLYURETHANE FOAM PANELS' and "INSULATED POLYURETHANE FOAM DOORS' is determined under Chapter 39.25 of the Central Excise Tariff Act, 1985 schedule.