2005 (6) TMI 73 - AT - Central Excise

Summary

Issues:
Classification of "Pressure Pan with Lid" and "Pressure Pan without Lid" under Central Excise Rules, 1944.

Analysis:
The appeals were filed by the Revenue against an order of the Commissioner (Appeals) regarding the classification of "Pressure Pan with Lid" and "Pressure Pan without Lid" under the Central Excise Rules, 1944. The respondents had claimed exemption under Notification No. 41/94-C.E., dated 1-3-1994, for these products. The original authority classified "Pressure Pan with Lid" as a Pressure Cooker and held that Central Excise Duty was leviable at 10% ad valorem. The Commissioner (Appeals) partially allowed the appeals, classifying "Pressure Pan with Lid" and "Pressure Pan without Lid" as kitchen articles covered by the notification. The Revenue challenged this decision, arguing that the items should be classified as Pressure Cooker and its parts, respectively.

Upon examination of samples and arguments from both sides, the Tribunal considered whether the items should be classified based on functional or commercial identity tests. The Revenue contended that "Pressure Pan with Lid" should be treated as a Pressure Cooker due to its functionality, while the respondents argued for a commercial identity classification. The Tribunal observed that the items, when assembled, functioned as a Pressure Cooker, leading to their classification as such under the Trade Parlance Test established by the Supreme Court. Consequently, the benefit of 'nil' rate of duty under the notification was not applicable to these items.

In conclusion, the Tribunal upheld the Revenue's appeals, classifying "Pressure Pan with Lid" and "Pressure Pan without Lid" as a Pressure Cooker and its part, respectively, under the Central Excise Rules, 1944. The decision was based on the Trade Parlance Test and commercial identity considerations, leading to the denial of the exemption claimed by the respondents.